Consumer Portfolio Services (CPSS) 10-Q 7 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 01, 2019
Document And Entity Information
Entity Registrant Name	CONSUMER PORTFOLIO SERVICES INC
Entity Central Index Key	0000889609
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	1-14116
Entity's Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Incorporation, State or Country Code	CA
Entity Common Stock, Shares Outstanding		22,525,718
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Entity Ex transition period	false

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 9,745	$ 12,787
Restricted cash and equivalents	125,486	117,323
Finance receivables	1,180,253	1,522,085
Less: Allowance for finance credit losses	(32,664)	(67,376)
Finance receivables, net	1,147,589	1,454,709
Finance receivables measured at fair value	1,158,365	821,066
Furniture and equipment, net	1,728	1,837
Deferred tax assets, net	17,119	19,188
Accrued interest receivable	16,394	31,969
Other assets	48,387	26,801
Total	2,524,813	2,485,680
Liabilities
Accounts payable and accrued expenses	53,960	31,692
Warehouse lines of credit	139,224	136,847
Residual interest financing	39,292	39,106
Securitization trust debt	2,077,286	2,063,627
Subordinated renewable notes	14,368	17,290
Total	2,324,130	2,288,562
Shareholders' Equity
Preferred stock	0	0
Common stock, no par value; authorized 75,000,000 shares; 22,525,718 and 22,421,688 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively	70,299	70,273
Retained earnings	137,938	134,399
Accumulated other comprehensive loss	(7,554)	(7,554)
Total stockholders' equity	200,683	197,118
Total liabilities and stockholders' equity	2,524,813	2,485,680
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred stock	$ 0	$ 0

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Shareholders' Equity
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized	4,998,130	4,998,130
Preferred stock, issued	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, authorized	75,000,000	75,000,000
Common stock, issued	22,525,718	22,421,688
Common stock, outstanding	22,525,718	22,421,688
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized	1,870	1,870
Preferred stock, issued	0	0

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Interest income	$ 84,449	$ 97,012	$ 170,294	$ 197,918
Other income	1,876	2,350	4,261	5,008
Total revenues	86,325	99,362	174,555	202,926
Expenses:
Employee costs	19,706	19,842	38,779	40,483
General and administrative	8,750	7,450	16,924	14,946
Interest	27,703	25,187	54,993	49,249
Provision for credit losses	20,489	35,531	44,445	76,038
Sales	4,634	4,588	9,470	8,798
Occupancy	2,011	1,860	3,985	3,709
Depreciation and amortization	262	250	513	490
Total operating expenses	83,555	94,708	169,109	193,713
Income before income tax expense	2,770	4,654	5,446	9,213
Income tax expense	970	1,489	1,907	2,901
Net income	$ 1,800	$ 3,165	$ 3,539	$ 6,312
Earnings per share:
Basic (in dollars per share)	$ 0.08	$ 0.15	$ 0.16	$ 0.3
Diluted (in dollars per share)	$ 0.08	$ 0.13	$ 0.15	$ 0.25
Number of shares used in computing earnings per share:
Basic (in shares)	22,362	21,178	22,302	21,375
Diluted (in shares)	23,978	25,123	24,119	25,393

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 1,800	$ 3,165	$ 3,539	$ 6,312
Other comprehensive income/(loss); change in funded status of pension plan	0	0	0	0
Comprehensive income	$ 1,800	$ 3,165	$ 3,539	$ 6,312

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 3,539	$ 6,312
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred acquisition fees and origination costs	952	1,444
Net interest income accretion on fair value receivables	39,822	4,743
Depreciation and amortization	513	490
Amortization of deferred financing costs	4,127	4,313
Provision for credit losses	44,445	76,038
Stock-based compensation expense	1,119	2,153
Changes in assets and liabilities:
Accrued interest receivable	15,575	9,236
Deferred tax assets, net	2,069	1,016
Other assets	(1,324)	(3,048)
Accounts payable and accrued expenses	1,581	(1,402)
Net cash provided by operating activities	112,418	101,295
Cash flows from investing activities:
Payments received on finance receivables held for investment	261,723	325,161
Purchases of finance receivables measured at fair value	(494,626)	(430,611)
Payments received on finance receivables at fair value	117,505	12,973
Change in repossessions held in inventory	425	45
Purchase of furniture and equipment	(404)	(637)
Net cash used in investing activities	(115,377)	(93,069)
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	482,675	391,823
Proceeds from issuance of subordinated renewable notes	1,613	407
Payments on subordinated renewable notes	(4,535)	(1,142)
Net advances of warehouse lines of credit	2,677	24,766
Net advances of residual interest financing debt	0	40,000
Repayment of securitization trust debt	(468,874)	(444,818)
Payment of financing costs	(4,383)	(3,803)
Purchase of common stock	(1,440)	(3,260)
Exercise of options and warrants	347	480
Net cash provided by (used in) financing activities	8,080	4,453
Increase in cash and cash equivalents	5,121	12,679
Cash and restricted cash at beginning of period	130,110	124,696
Cash and restricted cash at end of period	135,231	137,375
Supplemental disclosure of cash flow information:
Interest	50,417	44,534
Income taxes	(3,227)	7,258
Non-cash financing activities:
Right-of-use asset, net	(20,687)	0
Lease liability	22,145	0
Deferred office rent	$ (1,458)	$ 0

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Beginning balance, shares at Dec. 31, 2017	21,489,000
Beginning balance, value at Dec. 31, 2017	$ 71,582	$ 119,537	$ (7,182)
Common stock issued upon exercise of options and warrants, shares	313,000
Common stock issued upon exercise of options and warrants, value	$ 480
Repurchase of common stock, shares	(839,000)
Repurchase of common stock, value	$ (3,260)
Stock-based compensation	$ 2,153
Pension benefit obligation				$ 0
Net income		6,312		6,312
Ending balance, shares at Jun. 30, 2018	20,963,000
Ending balance, value at Jun. 30, 2018	$ 70,955	125,849	(7,182)	189,622
Beginning balance, shares at Mar. 31, 2018	21,442,000
Beginning balance, value at Mar. 31, 2018	$ 71,824	122,684	(7,182)
Common stock issued upon exercise of options and warrants, shares	5,000
Common stock issued upon exercise of options and warrants, value	$ 5
Repurchase of common stock, shares	(484,000)
Repurchase of common stock, value	$ (1,841)
Stock-based compensation	$ 967
Pension benefit obligation				0
Net income		3,165		3,165
Ending balance, shares at Jun. 30, 2018	20,963,000
Ending balance, value at Jun. 30, 2018	$ 70,955	125,849	(7,182)	189,622
Beginning balance, shares at Dec. 31, 2018	22,422,000
Beginning balance, value at Dec. 31, 2018	$ 70,273	134,399	(7,554)	197,118
Common stock issued upon exercise of options and warrants, shares	483,000
Common stock issued upon exercise of options and warrants, value	$ 347
Repurchase of common stock, shares	(379,000)
Repurchase of common stock, value	$ (1,440)
Stock-based compensation	$ 1,119
Pension benefit obligation				0
Net income		3,539		3,539
Ending balance, shares at Jun. 30, 2019	22,526,000
Ending balance, value at Jun. 30, 2019	$ 70,299	137,938	(7,554)	200,683
Beginning balance, shares at Mar. 31, 2019	22,134,000
Beginning balance, value at Mar. 31, 2019	$ 69,544	136,138	(7,554)
Common stock issued upon exercise of options and warrants, shares	405,000
Common stock issued upon exercise of options and warrants, value	$ 274
Repurchase of common stock, shares	(13,000)
Repurchase of common stock, value
Stock-based compensation	$ 481
Pension benefit obligation				0
Net income		1,800		1,800
Ending balance, shares at Jun. 30, 2019	22,526,000
Ending balance, value at Jun. 30, 2019	$ 70,299	$ 137,938	$ (7,554)	$ 200,683

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies Description of Business We were formed in California on March 8, 1991. We specialize in purchasing and servicing retail automobile installment sale contracts (“automobile contracts” or “finance receivables”) originated by licensed motor vehicle dealers located throughout the United States (“dealers”) in the sale of new and used automobiles, light trucks and passenger vans. Through our purchases, we provide indirect financing to dealer customers for borrowers with limited credit histories or past credit problems (“sub-prime customers”). We serve as an alternative source of financing for dealers, allowing sales to customers who otherwise might not be able to obtain financing. In addition to purchasing installment purchase contracts directly from dealers, we have also (i) lent money directly to consumers for loans secured by vehicles, (ii) purchased immaterial amounts of vehicle purchase money loans from non-affiliated lenders, and (iii) acquired installment purchase contracts in four merger and acquisition transactions. In this report, we refer to all of such contracts and loans as "automobile contracts." Basis of Presentation Our Unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America, with the instructions to Form 10-Q and with Article 10 of Regulation S-X of the Securities and Exchange Commission, and include all adjustments that are, in management’s opinion, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. Results for the six month period ended June 30, 2019 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, 2018. 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 carrying value of the receivables. We re-evaluate the fair value of such receivables at the close of each measurement period. If the reevaluation were to yield a value materially different from the carrying value, an adjustment would be required. Anticipated credit losses are included in our estimation of cash to be received with respect to receivables. Because such credit losses are included in our computation of the appropriate level yield, we do not thereafter make periodic provision for credit losses, as our best estimate of the lifetime aggregate of credit losses is included in that initial computation. Also because we include anticipated credit losses in our computation of the level yield, the computed level yield is materially lower than the average contractual rate applicable to the receivables. Because our initial carrying value is fixed as the price we pay for the receivable, rather than as the contractual principal balance, we do not record acquisition fees as an amortizing asset related to the receivables, nor do we capitalize costs of acquiring the receivables. Rather we recognize the costs of acquisition as expenses in the period incurred. Other Income The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Direct mail revenues $ 1,051 $ 1,708 $ 2,387 $ 3,504 Convenience fee revenue 570 390 1,270 840 Recoveries on previously charged-off contracts 45 36 102 154 Sales tax refunds 204 204 431 438 Other 6 12 71 72 Other income for the period $ 1,876 $ 2,350 $ 4,261 $ 5,008 On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”. The majority of the Company’s revenues come from interest income which is outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within Other Income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include revenue associated with direct mail and other related products and services that we offer to our dealers. Leases Effective January 1, 2019, the Company adopted guidance Accounting Standards Update (“ASU 2016-02”) Topic 842, “Leases” using the modified retrospective transition method. Prior comparable periods are presented accordance with previous guidance under Accounting Standards Codification (“ASC”) Topic 840, “Leases.” The Company also elected the package of practical expedients, ASU 2018-11. This election allowed the Company to not reassess if expired or existing contracts contain leases, to not reassess lease classifications for any expired or existing leases and to not reassess existing leases initial direct costs. We determine if a contract contains a lease at contract inception. Right-of-use assets and liabilities are recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use the Company’s incremental borrowing rate. Right-of-use assets are included in other assets and lease liabilities are included in accounts payable and accrued expenses in our Unaudited Condensed Consolidated Balance Sheet at June 30, 2019. 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: Six Months Ended, June 30, 2019 (In thousands) Operating Leases Operating lease right-of-use assets $ 23,555 Less: Accumulated amortization right-of-use assets (3,348 ) Operating lease right-of-use assets, net $ 20,207 Operating lease liabilities $ (21,660 ) Finance Leases Property and equipment, at cost $ 545 Less: Accumulated depreciation (42 ) Property and equipment, net $ 503 Finance lease liabilities $ (485 ) Weighted Average Discount Rate Operating lease 5.0% Finance lease 6.7% Maturities of lease liabilities were as follows: (In thousands) Operating Finance Year Ending December 31, Lease Lease 2019 (excluding the six months ended June 30, 2019) 3,809 91 2020 7,500 183 2021 7,391 183 2022 6,125 60 2023 1,389 18 Thereafter 689 6 Total undiscounted lease payments 26,903 541 Less amounts representing interest (5,243 ) (56 ) Lease Liability 21,660 485 The following table presents the leases expense included in Occupancy, General and administrative on our Unaudited Condensed Consolidated Statement of Operations: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Operating lease cost $ 1,886 $ 1,795 $ 3,775 $ 3,505 Finance lease cost 44 – 44 – Total lease cost $ 1,930 $ 1,795 $ 3,819 $ 3,505 The following table presents the supplemental cash flow information related to leases: Three Months Six Months June 30, 2019 June 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: $ Operating cash flows from operating leases $ 1,890 $ 3,776 Operating cash flows from finance leases 36 36 Financing cash flows from finance leases 8 8 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, 2019, we recorded stock-based compensation costs in the amount of $481,000 and $1.1 million, respectively. These stock-based compensation costs were $1.0 million and $2.2 million for the three and six months ended June 30, 2018. As of June 30, 2019, unrecognized stock-based compensation costs to be recognized over future periods equaled $2.5 million. This amount will be recognized as expense over a weighted-average period of 2.0 years. The following represents stock option activity for the six months ended June 30, 2019: Weighted Number Weighted Average of Average Remaining shares Exercise Contractual (in thousands) Price Term Options outstanding at the beginning of period 14,421 $ 4.57 N/A Granted – – N/A Exercised (483 ) 0.86 N/A Forfeited – – N/A Options outstanding at the end of period 13,938 $ 4.69 3.52 years Options exercisable at the end of period 11,742 $ 4.87 3.22 years At June 30, 2019, the aggregate intrinsic value of options outstanding and exercisable was $7.0 million and $6.5 million, respectively. There were 482,500 options exercised for the six months ended June 30, 2019 compared to 312,500 for the comparable period in 2018. The total intrinsic value of options exercised was $1.4 million and $860,000 for the six-month periods ended June 30, 2019 and 2018. There were 2,873,000 shares available for future stock option grants under existing plans as of June 30, 2019. Purchases of Company Stock The table below describes the purchase of our common stock for the six-month ended June 30, 2019 and 2018: Six Months Ended June 30, 2019 June 30, 2018 Shares Avg. Price Shares Avg. Price Open market purchases 335,546 $ 3.95 714,898 $ 3.81 Shares redeemed upon net exercise of stock options 18,424 3.76 33,599 4.37 Other purchases 24,500 4.20 90,000 4.13 Total stock purchases 378,470 $ 3.97 838,497 $ 3.87 Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on net income or shareholders’ equity. Financial Covenants Certain of our securitization transactions, our warehouse credit facilities and our residual interest financing contain various financial covenants requiring minimum financial ratios and results. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. As of June 30, 2019, 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, 2019, our best estimate of probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred cannot be estimated with certainty. Adoption of New Accounting Standards In June 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The revised accounting guidance changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. ASU 2016-13 was initially scheduled to become effective for interim and annual reporting periods beginning after December 15, 2019, however on July 17, 2019, the FASB proposed a tentative effective date for smaller reporting companies. If the FASB approves the tentative decision, ASU 2016-13 would become effective for interim and annual reporting periods arly adoption would still be permitted for interim and annual reporting periods beginning after December 15, 2019.

2. Finance Receivables

2. Finance Receivables	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Finance Receivables	(2) Finance Receivables Our portfolio of finance receivables consists of small-balance homogeneous contracts comprising a single segment and class that is collectively evaluated for impairment on a portfolio basis according to delinquency status. Our contract purchase guidelines are designed to produce a homogenous portfolio. For key terms such as interest rate, length of contract, monthly payment and amount financed, there is relatively little variation from the average for the portfolio. We report delinquency on a contractual basis. Once a contract becomes greater than 90 days delinquent, we do not recognize additional interest income until the obligor under the contract makes sufficient payments to be less than 90 days delinquent. Any payments received on a contract that is greater than 90 days delinquent are first applied to accrued interest and then to principal reduction. In January 2018 the Company adopted the fair value method of accounting for finance receivables acquired after 2017. Finance receivables measured at fair value are recorded separately on the Company’s Balance Sheet and are excluded from all tables in this footnote. The following table presents the components of Finance Receivables, net of unearned interest: June 30, December 31, 2019 2018 (In thousands) Finance receivables Automobile finance receivables, net of unearned interest $ 1,177,484 $ 1,518,395 Unearned acquisition fees and originations costs 2,769 3,690 Finance receivables $ 1,180,253 $ 1,522,085 We consider an automobile contract delinquent when an obligor fails to make at least 90% of a contractually due payment by the following due date, which date may have been extended within limits specified in the servicing agreements. The period of delinquency is based on the number of days payments are contractually past due, as extended where applicable. Automobile contracts less than 31 days delinquent are not 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, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (In thousands) Delinquency Status Current $ 948,130 $ 1,262,730 31 - 60 days 135,066 157,688 61 - 90 days 65,294 66,134 91 + days 28,994 31,843 $ 1,177,484 $ 1,518,395 Finance receivables totaling $29.0 million and $31.8 million at June 30, 2019 and December 31, 2018, 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 " " 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, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Balance at beginning of period $ 48,196 $ 100,844 $ 67,376 $ 109,187 Provision for credit losses on finance receivables 20,489 35,531 44,445 76,038 Charge-offs (50,409 ) (53,493 ) (102,919 ) (109,595 ) Recoveries 14,388 11,494 23,762 18,746 Balance at end of period $ 32,664 $ 94,376 $ 32,664 $ 94,376 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, 2019 2018 (In thousands) Gross balance of repossessions in inventory $ 32,359 $ 33,462 Allowance for losses on repossessed inventory (23,886 ) (24,564 ) Net repossessed inventory included in other assets $ 8,473 $ 8,898

3. Securitization Trust Debt

3. Securitization Trust Debt	6 Months Ended
	Jun. 30, 2019
Securitization Trust Debt
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: Weighted Average Final Receivables Outstanding Outstanding Contractual Scheduled Pledged at Principal at Principal at Interest Rate Payment June 30, Initial June 30, December 31, at June 30, Series Date (1) 2019 (2) Principal 2019 2018 2019 (Dollars in thousands) CPS 2014-A June 2021 – 180,000 – 15,328 – CPS 2014-B September 2021 17,621 202,500 16,123 24,051 5.01% CPS 2014-C December 2021 30,305 273,000 29,187 40,896 4.82% CPS 2014-D March 2022 34,885 267,500 34,054 46,489 5.17% CPS 2015-A June 2022 40,029 245,000 38,299 52,448 4.92% CPS 2015-B September 2022 49,220 250,000 49,129 64,591 4.87% CPS 2015-C December 2022 70,902 300,000 70,694 90,639 5.31% CPS 2016-A March 2023 93,772 329,460 93,582 119,444 5.56% CPS 2016-B June 2023 109,505 332,690 106,586 135,688 5.91% CPS 2016-C September 2023 109,169 318,500 107,065 136,114 5.73% CPS 2016-D April 2024 86,057 206,325 83,989 104,645 4.26% CPS 2017-A April 2024 93,378 206,320 91,757 113,527 4.38% CPS 2017-B December 2023 113,890 225,170 101,091 127,726 3.74% CPS 2017-C September 2024 115,032 224,825 104,137 131,845 3.69% CPS 2017-D June 2024 116,795 196,300 106,895 132,919 3.42% CPS 2018-A March 2025 124,648 190,000 115,610 142,643 3.35% CPS 2018-B December 2024 145,953 201,823 139,191 167,809 3.75% CPS 2018-C September 2025 176,932 230,275 167,341 204,418 3.82% CPS 2018-D June 2025 203,821 233,730 188,878 224,189 3.86% CPS 2019-A March 2026 242,554 254,400 225,776 – 3.82% CPS 2019-B June 2026 223,152 228,275 219,826 – 3.00% $ 2,197,620 $ 5,096,093 $ 2,089,210 $ 2,075,409 (1) The Final Scheduled Payment Date represents final legal maturity of the securitization trust debt. Securitization trust debt is expected to become due and to be paid prior to those dates, based on amortization of the finance receivables pledged to the trusts. Expected payments, which will depend on the performance of such receivables, as to which there can be no assurance, are $421.4 million in 2019, $693.2 million in 2020, $473.3 million in 2021, $272.5 million in 2022, $181.7 million in 2023, $31.7 million in 2024, $3.4 million in 2025. (2) Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet. Debt issuance costs of $11.9 million and $11.8 million as of June 30, 2019 and December 31, 2018, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the securitization trust debt on our 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, 2019, 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, 2019, restricted cash under the various agreements totaled approximately $125.5 million. Interest expense on the securitization trust debt consists of the stated rate of interest plus amortization of additional costs of borrowing. Additional costs of borrowing include facility fees, amortization of deferred financing costs and discounts on notes sold. Deferred financing costs and discounts on notes sold related to the securitization trust debt are amortized using a level yield method. Accordingly, the effective cost of the securitization trust debt is greater than the contractual rate of interest disclosed above. Our wholly-owned bankruptcy remote subsidiaries were formed to facilitate the above asset-backed financing transactions. Similar bankruptcy remote subsidiaries issue the debt outstanding under our credit facilities. Bankruptcy remote refers to a legal structure in which it is expected that the applicable entity would not be included in any bankruptcy filing by its parent or affiliates. All of the assets of these subsidiaries have been pledged as collateral for the related debt. All such transactions, treated as secured financings for accounting and tax purposes, are treated as sales for all other purposes, including legal and bankruptcy purposes. None of the assets of these subsidiaries are available to pay other creditors. On July 24, 2019 we completed our third securitization transaction of 2019. In the transaction, qualified institutional buyers purchased $243.5 million of asset-backed notes secured by $244.1 million in automobile receivables purchased by us. The sold notes, issued by CPS Auto Receivables Trust 2019-C, consist of six classes. Ratings of the notes were provided by Standard & Poor’s and DBRS, and were based on the structure of the transaction, the historical performance of similar receivables and CPS’s experience as a servicer. The weighted average yield on the notes is approximately 3.36%.

4. Debt

4. Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Debt	(4) Debt The terms and amounts of our other debt outstanding at June 30, 2019 and December 31, 2018 are summarized below: Amount Outstanding at June 30, December 31, 2019 2018 (In thousands) Description Interest Rate Maturity Warehouse lines of credit 5.50% over one month Libor (Minimum 6.50%) February 2021 $ 41,509 $ 38,198 3.00% over one month Libor (Minimum 3.75%) September 2020 74,851 99,885 6.75% over a commercial paper rate (Minimum 7.75%) November 2019 24,400 – Residual interest financing 8.60% January 2026 40,000 40,000 Subordinated renewable notes Weighted average rate of 8.71% and 8.53% at June 30, 2019 and December 31, 2018 , respectively Weighted average maturity of September 2021 and January 2021 at June 30, 2019 and December 31, 2018, respectively 14,368 17,290 $ 195,128 $ 195,373 On February 22, 2019 we renewed our $100 million warehouse credit line that was first established in May 2012. There was $41.5 million outstanding under this facility at June 30, 2019. The revolving period for this facility was extended to February 2021 followed by an amortization period through February 2023 for any receivables pledged at the end of the revolving period. Unamortized debt issuance costs of $708,000 and $894,000 as of June 30, 2019 and December 31, 2018, respectively, have been excluded from the amount reported above for residual interest financing. Similarly, unamortized debt issuance costs of $1.5 million and $1.2 million as of June 30, 2019 and December 31, 2018, 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.

5. Interest Income and Interest

5. Interest Income and Interest Expense	6 Months Ended
	Jun. 30, 2019
Banking and Thrift [Abstract]
Interest Income and Interest Expense	(5) Interest Income and Interest Expense The following table presents the components of interest income: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest on finance receivables $ 55,660 $ 87,784 $ 117,950 $ 184,972 Interest on finance receivables at fair value 27,978 8,832 50,793 12,340 Other interest income 811 396 1,551 606 Interest income $ 84,449 $ 97,012 $ 170,294 $ 197,918 The following table presents the components of interest expense: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Securitization trust debt $ 24,466 $ 22,255 $ 48,454 $ 44,084 Warehouse lines of credit 1,960 2,135 3,980 4,023 Residual interest financing 955 452 1,911 452 Subordinated renewable notes 322 345 648 690 Interest expense $ 27,703 $ 25,187 $ 54,993 $ 49,249

6. Earnings Per Share

6. Earnings Per Share	6 Months Ended
	Jun. 30, 2019
Earnings per share:
Earnings Per Share	(6) Earnings Per Share Earnings per share for the three-month and six-month periods ended June 30, 2019 and 2018 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, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30 2019 2018 2019 2018 (In thousands) (In thousands) Weighted average number of common shares outstanding during the period used to compute basic earnings per share 22,362 21,178 22,302 21,375 Incremental common shares attributable to exercise of outstanding options and warrants 1,616 3,945 1,817 4,018 Weighted average number of common shares used to compute diluted earnings per share 23,978 25,123 24,119 25,393 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, 2019 would have included an additional 10.7 million and 10.5 million shares, respectively, attributable to the exercise of outstanding options and warrants. For the three-month and six-month periods ended June 30, 2018, an additional 10.2 million and 9.7 million shares, respectively, would be included in the diluted earnings per share calculation.

7. Income Taxes

7. Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	(7) Income Taxes We file numerous consolidated and separate income tax returns with the United States and with many states. With few exceptions, we are no longer subject to U.S. federal, state, or local examinations by tax authorities for years before 2013. As of June 30, 2019 and December 31, 2018, 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 $17.1 million as of June 30, 2019 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $17.1 million consists of approximately $12.2 million of net U.S. federal deferred tax assets and $4.9 million of net state deferred tax assets. Income tax expense was $970,000 and $1.9 million for the three months and six months ended June 30, 2019 and represents an effective income tax rate of 35%, compared to income tax expense of $1.5 million and $2.9 million for the three and six months ended June 30, 2018, and represents an effective income tax rate of and 32%.

8. Legal Proceedings

8. Legal Proceedings	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	(8) 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. Wage and Hour Claim. We believe that our compensation practices with respect to our sales representatives are compliant with applicable law. Accordingly, we have defended and intend to continue to defend this lawsuit. We have not recorded a liability with respect to this claim on the accompanying consolidated financial statements. In General 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

9. Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	(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 impact on our fair value measurement. The table below presents a reconciliation of the finance receivables measured at fair value on a recurring basis using significant unobservable inputs: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Balance at beginning of period $ 997,552 $ 209,847 $ 821,066 $ – Finance receivables at fair value acquired during period 249,873 218,001 494,626 430,611 Payments received on finance receivables at fair value (68,005 ) (10,331 ) (117,505 ) (12,973 ) Net interest income accretion on fair value receivables (21,055 ) (4,622 ) (39,822 ) (4,743 ) Mark to fair value – – – – Balance at end of period $ 1,158,365 $ 412,895 $ 1,158,365 $ 412,895 The table below compares the fair values of these finance receivables to their contractual balances for the periods shown: June 30, 2019 December 31, 2018 Contractual Fair Contractual Fair Balance Value Balance Value (In thousands) Finance receivables measured at fair value $ 1,190,231 $ 1,158,365 $ 829,039 $ 821,066 The following table provides certain qualitative information about our level 3 fair value measurements: Financial Instrument Fair Values as of Inputs as of June 30, December 31, June 30, December 31, 2019 2018 Unobservable Inputs 2019 2018 (In thousands) Assets: Finance receivables measured at fair value $ 1,158,365 $ 821,066 Discount rate Cumulative net losses 8.9% - 11.1% 15.0% - 16.1% 8.9% - 9.9% 15.0% - 16.0% The following table summarizes the delinquency status of these finance receivables measured at fair value as of June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (In thousands) Delinquency Status Current $ 1,104,196 $ 790,727 31 - 60 days 56,156 26,285 61 - 90 days 20,782 8,350 91 + days 9,097 3,677 $ 1,190,231 $ 829,039 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, 2019 the finance receivables related to the repossessed vehicles in inventory totaled $32.4 million. We have applied a valuation adjustment, or loss allowance, of $23.9 million, which is based on a recovery rate of approximately 27%, resulting in an estimated fair value and carrying amount of $8.5 million. The fair value and carrying amount of the repossessed inventory at December 31, 2018 was $8.9 million after applying a valuation adjustment of $24.6 million. There were no transfers in or out of level 1, level 2 or level 3 assets and liabilities for the three months ended June 30, 2019 and 2018. The estimated fair values of financial assets and liabilities at June 30, 2019 and December 31, 2018, were as follows: As of June 30, 2019 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 9,745 $ 9,745 $ – $ – $ 9,745 Restricted cash and equivalents 125,486 125,486 – – 125,486 Finance receivables, net 1,147,589 – – 1,110,331 1,110,331 Accrued interest receivable 16,394 – – 16,394 16,394 Liabilities: Warehouse lines of credit $ 139,224 $ – $ – $ 139,224 $ 139,224 Accrued interest payable 5,268 – – 5,268 5,268 Residual interest financing 39,292 – – 39,292 39,292 Securitization trust debt 2,077,286 – – 2,098,476 2,098,476 Subordinated renewable notes 14,368 – – 14,368 14,368 As of December 31, 2018 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 12,787 $ 12,787 $ – $ – $ 12,787 Restricted cash and equivalents 117,323 117,323 – – 117,323 Finance receivables, net 1,454,709 – – 1,434,631 1,434,631 Accrued interest receivable 31,969 – – 31,969 31,969 Liabilities: Warehouse lines of credit $ 136,847 $ – $ – $ 136,847 $ 136,847 Accrued interest payable 4,819 – – 4,819 4,819 Residual interest financing 39,106 – – 39,106 39,106 Securitization trust debt 2,063,627 – – 2,051,920 2,051,920 Subordinated renewable notes 17,290 – – 17,290 17,290

1. Summary of Significant Acc_2

1. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
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) 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	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, 2019 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, 2018.
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.
Finance Receivables Measured at Fair Value	Finance Receivables Measured at Fair Value Effective January 1, 2018, we adopted the fair value method of accounting for finance receivables acquired on or after that date. For each finance receivable acquired after 2017, we consider the price paid on the purchase date as the fair value for such receivable. We estimate the cash to be received in the future with respect to such receivables, based on our experience with similar receivables acquired in the past. We then compute the internal rate of return that results in the present value of those estimated cash receipts being equal to the purchase date fair value. Thereafter, we recognize interest income on such receivables on a level yield basis using that internal rate of return as the applicable interest rate. Cash received with respect to such receivables is applied first against such interest income, and then to reduce the carrying value of the receivables. We re-evaluate the fair value of such receivables at the close of each measurement period. If the reevaluation were to yield a value materially different from the carrying value, an adjustment would be required. Anticipated credit losses are included in our estimation of cash to be received with respect to receivables. Because such credit losses are included in our computation of the appropriate level yield, we do not thereafter make periodic provision for credit losses, as our best estimate of the lifetime aggregate of credit losses is included in that initial computation. Also because we include anticipated credit losses in our computation of the level yield, the computed level yield is materially lower than the average contractual rate applicable to the receivables. Because our initial carrying value is fixed as the price we pay for the receivable, rather than as the contractual principal balance, we do not record acquisition fees as an amortizing asset related to the receivables, nor do we capitalize costs of acquiring the receivables. Rather we recognize the costs of acquisition as expenses in the period incurred.
Other Income	Other Income The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Direct mail revenues $ 1,051 $ 1,708 $ 2,387 $ 3,504 Convenience fee revenue 570 390 1,270 840 Recoveries on previously charged-off contracts 45 36 102 154 Sales tax refunds 204 204 431 438 Other 6 12 71 72 Other income for the period $ 1,876 $ 2,350 $ 4,261 $ 5,008 On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”. The majority of the Company’s revenues come from interest income which is outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within Other Income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include revenue associated with direct mail and other related products and services that we offer to our dealers.
Leases	Leases Effective January 1, 2019, the Company adopted guidance Accounting Standards Update (“ASU 2016-02”) Topic 842, “Leases” using the modified retrospective transition method. Prior comparable periods are presented accordance with previous guidance under Accounting Standards Codification (“ASC”) Topic 840, “Leases.” The Company also elected the package of practical expedients, ASU 2018-11. This election allowed the Company to not reassess if expired or existing contracts contain leases, to not reassess lease classifications for any expired or existing leases and to not reassess existing leases initial direct costs. We determine if a contract contains a lease at contract inception. Right-of-use assets and liabilities are recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use the Company’s incremental borrowing rate. Right-of-use assets are included in other assets and lease liabilities are included in accounts payable and accrued expenses in our Unaudited Condensed Consolidated Balance Sheet at June 30, 2019. 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: Six Months Ended, June 30, 2019 (In thousands) Operating Leases Operating lease right-of-use assets $ 23,555 Less: Accumulated amortization right-of-use assets (3,348 ) Operating lease right-of-use assets, net $ 20,207 Operating lease liabilities $ (21,660 ) Finance Leases Property and equipment, at cost $ 545 Less: Accumulated depreciation (42 ) Property and equipment, net $ 503 Finance lease liabilities $ (485 ) Weighted Average Discount Rate Operating lease 5.0% Finance lease 6.7% Maturities of lease liabilities were as follows: (In thousands) Operating Finance Year Ending December 31, Lease Lease 2019 (excluding the six months ended June 30, 2019) 3,809 91 2020 7,500 183 2021 7,391 183 2022 6,125 60 2023 1,389 18 Thereafter 689 6 Total undiscounted lease payments 26,903 541 Less amounts representing interest (5,243 ) (56 ) Lease Liability 21,660 485 The following table presents the leases expense included in Occupancy, General and administrative on our Unaudited Condensed Consolidated Statement of Operations: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Operating lease cost $ 1,886 $ 1,795 $ 3,775 $ 3,505 Finance lease cost 44 – 44 – Total lease cost $ 1,930 $ 1,795 $ 3,819 $ 3,505 The following table presents the supplemental cash flow information related to leases: Three Months Six Months June 30, 2019 June 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: $ Operating cash flows from operating leases $ 1,890 $ 3,776 Operating cash flows from finance leases 36 36 Financing cash flows from finance leases 8 8
Stock-based Compensation	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, 2019, we recorded stock-based compensation costs in the amount of $481,000 and $1.1 million, respectively. These stock-based compensation costs were $1.0 million and $2.2 million for the three and six months ended June 30, 2018. As of June 30, 2019, unrecognized stock-based compensation costs to be recognized over future periods equaled $2.5 million. This amount will be recognized as expense over a weighted-average period of 2.0 years. The following represents stock option activity for the six months ended June 30, 2019: Weighted Number Weighted Average of Average Remaining shares Exercise Contractual (in thousands) Price Term Options outstanding at the beginning of period 14,421 $ 4.57 N/A Granted – – N/A Exercised (483 ) 0.86 N/A Forfeited – – N/A Options outstanding at the end of period 13,938 $ 4.69 3.52 years Options exercisable at the end of period 11,742 $ 4.87 3.22 years At June 30, 2019, the aggregate intrinsic value of options outstanding and exercisable was $7.0 million and $6.5 million, respectively. There were 482,500 options exercised for the six months ended June 30, 2019 compared to 312,500 for the comparable period in 2018. The total intrinsic value of options exercised was $1.4 million and $860,000 for the six-month periods ended June 30, 2019 and 2018. There were 2,873,000 shares available for future stock option grants under existing plans as of June 30, 2019.
Purchases of Company Stock	Purchases of Company Stock The table below describes the purchase of our common stock for the six-month ended June 30, 2019 and 2018: Six Months Ended June 30, 2019 June 30, 2018 Shares Avg. Price Shares Avg. Price Open market purchases 335,546 $ 3.95 714,898 $ 3.81 Shares redeemed upon net exercise of stock options 18,424 3.76 33,599 4.37 Other purchases 24,500 4.20 90,000 4.13 Total stock purchases 378,470 $ 3.97 838,497 $ 3.87
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 June 30, 2019, 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. We record at each measurement date, most recently as of June 30, 2019, our best estimate of probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred cannot be estimated with certainty.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In June 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The revised accounting guidance changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. ASU 2016-13 was initially scheduled to become effective for interim and annual reporting periods beginning after December 15, 2019, however on July 17, 2019, the FASB proposed a tentative effective date for smaller reporting companies. If the FASB approves the tentative decision, ASU 2016-13 would become effective for interim and annual reporting periods arly adoption would still be permitted for interim and annual reporting periods beginning after December 15, 2019.

1. Summary of Significant Acc_3

1. Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Schedule of other Income	The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Direct mail revenues $ 1,051 $ 1,708 $ 2,387 $ 3,504 Convenience fee revenue 570 390 1,270 840 Recoveries on previously charged-off contracts 45 36 102 154 Sales tax refunds 204 204 431 438 Other 6 12 71 72 Other income for the period $ 1,876 $ 2,350 $ 4,261 $ 5,008
Operating lease table	Six Months Ended, June 30, 2019 (In thousands) Operating Leases Operating lease right-of-use assets $ 23,555 Less: Accumulated amortization right-of-use assets (3,348 ) Operating lease right-of-use assets, net $ 20,207 Operating lease liabilities $ (21,660 )
Finance lease table	Six Months Ended, June 30, 2019 Finance Leases Property and equipment, at cost $ 545 Less: Accumulated depreciation (42 ) Property and equipment, net $ 503 Finance lease liabilities $ (485 )
Maturities of lease liabilities	Six Months Ended, June 30, 2019 (In thousands) Maturities of lease liabilities were as follows: (In thousands) Operating Finance Year Ending December 31, Lease Lease 2019 (excluding the six months ended June 30, 2019) 3,809 91 2020 7,500 183 2021 7,391 183 2022 6,125 60 2023 1,389 18 Thereafter 689 6 Total undiscounted lease payments 26,903 541 Less amounts representing interest (5,243 ) (56 ) Lease Liability 21,660 485
Leases expense included in occupancy, general and administrative on statement of operations	The following table presents the leases expense included in Occupancy, General and administrative on our Unaudited Condensed Consolidated Statement of Operations: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Operating lease cost $ 1,886 $ 1,795 $ 3,775 $ 3,505 Finance lease cost 44 – 44 – Total lease cost $ 1,930 $ 1,795 $ 3,819 $ 3,505
Cash flow information related to leases	The following table presents the supplemental cash flow information related to leases: Three Months Six Months June 30, 2019 June 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: $ Operating cash flows from operating leases $ 1,890 $ 3,776 Operating cash flows from finance leases 36 36 Financing cash flows from finance leases 8 8
Schedule of stock option activity	The following represents stock option activity for the six months ended June 30, 2019: Weighted Number Weighted Average of Average Remaining shares Exercise Contractual (in thousands) Price Term Options outstanding at the beginning of period 14,421 $ 4.57 N/A Granted – – N/A Exercised (483 ) 0.86 N/A Forfeited – – N/A Options outstanding at the end of period 13,938 $ 4.69 3.52 years Options exercisable at the end of period 11,742 $ 4.87 3.22 years
Schedule of purchases of company stock	The table below describes the purchase of our common stock for the six-month ended June 30, 2019 and 2018: Six Months Ended June 30, 2019 June 30, 2018 Shares Avg. Price Shares Avg. Price Open market purchases 335,546 $ 3.95 714,898 $ 3.81 Shares redeemed upon net exercise of stock options 18,424 3.76 33,599 4.37 Other purchases 24,500 4.20 90,000 4.13 Total stock purchases 378,470 $ 3.97 838,497 $ 3.87

2. Finance Receivables (Tables)

2. Finance Receivables (Tables)	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Schedule of financial receivables	The following table presents the components of Finance Receivables, net of unearned interest: June 30, December 31, 2019 2018 (In thousands) Finance receivables Automobile finance receivables, net of unearned interest $ 1,177,484 $ 1,518,395 Unearned acquisition fees and originations costs 2,769 3,690 Finance receivables $ 1,180,253 $ 1,522,085
Schedule of delinquency status of finance receivables	The following table summarizes the delinquency status of finance receivables as of June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (In thousands) Delinquency Status Current $ 948,130 $ 1,262,730 31 - 60 days 135,066 157,688 61 - 90 days 65,294 66,134 91 + days 28,994 31,843 $ 1,177,484 $ 1,518,395
Schedule of allowance for credit losses	The following table presents a summary of the activity for the allowance for finance credit losses for the three-month and six-month periods ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Balance at beginning of period $ 48,196 $ 100,844 $ 67,376 $ 109,187 Provision for credit losses on finance receivables 20,489 35,531 44,445 76,038 Charge-offs (50,409 ) (53,493 ) (102,919 ) (109,595 ) Recoveries 14,388 11,494 23,762 18,746 Balance at end of period $ 32,664 $ 94,376 $ 32,664 $ 94,376
Schedule of allowance for losses on repossessed inventory	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, 2019 2018 (In thousands) Gross balance of repossessions in inventory $ 32,359 $ 33,462 Allowance for losses on repossessed inventory (23,886 ) (24,564 ) Net repossessed inventory included in other assets $ 8,473 $ 8,898

3. Securitization Trust Debt (T

3. Securitization Trust Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Securitization Trust Debt
Schedule of securitization trust debt	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 Payment June 30, Initial June 30, December 31, at June 30, Series Date (1) 2019 (2) Principal 2019 2018 2019 (Dollars in thousands) CPS 2014-A June 2021 – 180,000 – 15,328 – CPS 2014-B September 2021 17,621 202,500 16,123 24,051 5.01% CPS 2014-C December 2021 30,305 273,000 29,187 40,896 4.82% CPS 2014-D March 2022 34,885 267,500 34,054 46,489 5.17% CPS 2015-A June 2022 40,029 245,000 38,299 52,448 4.92% CPS 2015-B September 2022 49,220 250,000 49,129 64,591 4.87% CPS 2015-C December 2022 70,902 300,000 70,694 90,639 5.31% CPS 2016-A March 2023 93,772 329,460 93,582 119,444 5.56% CPS 2016-B June 2023 109,505 332,690 106,586 135,688 5.91% CPS 2016-C September 2023 109,169 318,500 107,065 136,114 5.73% CPS 2016-D April 2024 86,057 206,325 83,989 104,645 4.26% CPS 2017-A April 2024 93,378 206,320 91,757 113,527 4.38% CPS 2017-B December 2023 113,890 225,170 101,091 127,726 3.74% CPS 2017-C September 2024 115,032 224,825 104,137 131,845 3.69% CPS 2017-D June 2024 116,795 196,300 106,895 132,919 3.42% CPS 2018-A March 2025 124,648 190,000 115,610 142,643 3.35% CPS 2018-B December 2024 145,953 201,823 139,191 167,809 3.75% CPS 2018-C September 2025 176,932 230,275 167,341 204,418 3.82% CPS 2018-D June 2025 203,821 233,730 188,878 224,189 3.86% CPS 2019-A March 2026 242,554 254,400 225,776 – 3.82% CPS 2019-B June 2026 223,152 228,275 219,826 – 3.00% $ 2,197,620 $ 5,096,093 $ 2,089,210 $ 2,075,409 (1) The Final Scheduled Payment Date represents final legal maturity of the securitization trust debt. Securitization trust debt is expected to become due and to be paid prior to those dates, based on amortization of the finance receivables pledged to the trusts. Expected payments, which will depend on the performance of such receivables, as to which there can be no assurance, are $421.4 million in 2019, $693.2 million in 2020, $473.3 million in 2021, $272.5 million in 2022, $181.7 million in 2023, $31.7 million in 2024, $3.4 million in 2025. (2) Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet.

4. Debt (Tables)

4. Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of debt outstanding	The terms and amounts of our other debt outstanding at June 30, 2019 and December 31, 2018 are summarized below: Amount Outstanding at June 30, December 31, 2019 2018 (In thousands) Description Interest Rate Maturity Warehouse lines of credit 5.50% over one month Libor (Minimum 6.50%) February 2021 $ 41,509 $ 38,198 3.00% over one month Libor (Minimum 3.75%) September 2020 74,851 99,885 6.75% over a commercial paper rate (Minimum 7.75%) November 2019 24,400 – Residual interest financing 8.60% January 2026 40,000 40,000 Subordinated renewable notes Weighted average rate of 8.71% and 8.53% at June 30, 2019 and December 31, 2018 , respectively Weighted average maturity of September 2021 and January 2021 at June 30, 2019 and December 31, 2018, respectively 14,368 17,290 $ 195,128 $ 195,373

5. Interest Income and Intere_2

5. Interest Income and Interest Expense (Tables)	6 Months Ended
	Jun. 30, 2019
Banking and Thrift [Abstract]
Schedule of interest income	The following table presents the components of interest income: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest on finance receivables $ 55,660 $ 87,784 $ 117,950 $ 184,972 Interest on finance receivables at fair value 27,978 8,832 50,793 12,340 Other interest income 811 396 1,551 606 Interest income $ 84,449 $ 97,012 $ 170,294 $ 197,918
Schedule of interest expense	The following table presents the components of interest expense: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Securitization trust debt $ 24,466 $ 22,255 $ 48,454 $ 44,084 Warehouse lines of credit 1,960 2,135 3,980 4,023 Residual interest financing 955 452 1,911 452 Subordinated renewable notes 322 345 648 690 Interest expense $ 27,703 $ 25,187 $ 54,993 $ 49,249

6. Earnings Per Share (Tables)

6. Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings per share:
Schedule of computation of basic and diluted earnings per share	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, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30 2019 2018 2019 2018 (In thousands) (In thousands) Weighted average number of common shares outstanding during the period used to compute basic earnings per share 22,362 21,178 22,302 21,375 Incremental common shares attributable to exercise of outstanding options and warrants 1,616 3,945 1,817 4,018 Weighted average number of common shares used to compute diluted earnings per share 23,978 25,123 24,119 25,393

9. Fair Value Measurements (Tab

9. Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of reconciliation of the finance receivables measured at fair value on a recurring basis	The table below presents a reconciliation of the finance receivables measured at fair value on a recurring basis using significant unobservable inputs: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Balance at beginning of period $ 997,552 $ 209,847 $ 821,066 $ – Finance receivables at fair value acquired during period 249,873 218,001 494,626 430,611 Payments received on finance receivables at fair value (68,005 ) (10,331 ) (117,505 ) (12,973 ) Net interest income accretion on fair value receivables (21,055 ) (4,622 ) (39,822 ) (4,743 ) Mark to fair value – – – – Balance at end of period $ 1,158,365 $ 412,895 $ 1,158,365 $ 412,895
Schedule of finance receivables to their contractual balances	The table below compares the fair values of these finance receivables to their contractual balances for the periods shown: June 30, 2019 December 31, 2018 Contractual Fair Contractual Fair Balance Value Balance Value (In thousands) Finance receivables measured at fair value $ 1,190,231 $ 1,158,365 $ 829,039 $ 821,066
Schedule of level 3 fair value measurements	The following table provides certain qualitative information about our level 3 fair value measurements: Financial Instrument Fair Values as of Inputs as of June 30, December 31, June 30, December 31, 2019 2018 Unobservable Inputs 2019 2018 (In thousands) Assets: Finance receivables measured at fair value $ 1,158,365 $ 821,066 Discount rate Cumulative net losses 8.9% - 11.1% 15.0% - 16.1% 8.9% - 9.9% 15.0% - 16.0%
Schedule of delinquency status of finance receivables measured at fair value	The following table summarizes the delinquency status of these finance receivables measured at fair value as of June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (In thousands) Delinquency Status Current $ 1,104,196 $ 790,727 31 - 60 days 56,156 26,285 61 - 90 days 20,782 8,350 91 + days 9,097 3,677 $ 1,190,231 $ 829,039
Schedule of estimated fair values of financial assets and liabilities	The estimated fair values of financial assets and liabilities at June 30, 2019 and December 31, 2018, were as follows: As of June 30, 2019 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 9,745 $ 9,745 $ – $ – $ 9,745 Restricted cash and equivalents 125,486 125,486 – – 125,486 Finance receivables, net 1,147,589 – – 1,110,331 1,110,331 Accrued interest receivable 16,394 – – 16,394 16,394 Liabilities: Warehouse lines of credit $ 139,224 $ – $ – $ 139,224 $ 139,224 Accrued interest payable 5,268 – – 5,268 5,268 Residual interest financing 39,292 – – 39,292 39,292 Securitization trust debt 2,077,286 – – 2,098,476 2,098,476 Subordinated renewable notes 14,368 – – 14,368 14,368 As of December 31, 2018 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 12,787 $ 12,787 $ – $ – $ 12,787 Restricted cash and equivalents 117,323 117,323 – – 117,323 Finance receivables, net 1,454,709 – – 1,434,631 1,434,631 Accrued interest receivable 31,969 – – 31,969 31,969 Liabilities: Warehouse lines of credit $ 136,847 $ – $ – $ 136,847 $ 136,847 Accrued interest payable 4,819 – – 4,819 4,819 Residual interest financing 39,106 – – 39,106 39,106 Securitization trust debt 2,063,627 – – 2,051,920 2,051,920 Subordinated renewable notes 17,290 – – 17,290 17,290

1. Summary of Significant Acc_4

1. Summary of Significant Accounting Policies (Details - Other Income) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other income for the period	$ 1,876	$ 2,350	$ 4,261	$ 5,008
Direct Mail Revenues [Member]
Other income for the period	1,051	1,708	2,387	3,504
Convenience Fee Revenue [Member]
Other income for the period	570	390	1,270	840
Recoveries on previously charged-off contracts [Member]
Other income for the period	45	36	102	154
Sales Tax Refunds [Member]
Other income for the period	204	204	431	438
Other Income [Member]
Other income for the period	$ 6	$ 12	$ 71	$ 72

1. Summary of Significant Acc_5

1. Summary of Significant Accounting Policies (Details - Operating leases) $ in Thousands	Jun. 30, 2019USD ($)
Operating Leases
Operating lease right-of-use assets	$ 23,555
Less: Accumulated amortization right-of-use assets	(3,348)
Operating lease right-of-use assets, net	20,207
Operating lease liabilities	$ (21,660)

1. Summary of Significant Acc_6

1. Summary of Significant Accounting Policies (Details - Finance Leases) $ in Thousands	Jun. 30, 2019USD ($)
Finance Leases
Property and equipment, at cost	$ 545
Less: Accumulated depreciation	(42)
Property and equipment, net	503
Finance lease liabilities	$ (485)

1. Summary of Significant Acc_7

1. Summary of Significant Accounting Policies (Details - Maturities of lease liabilities) $ in Thousands	Jun. 30, 2019USD ($)
Maturities of Operating lease liabilities
2019 (excluding the six months ended June 30, 2019)	$ 3,809
2020	7,500
2021	7,391
2022	6,125
2023	1,389
Thereafter	689
Total undiscounted lease payments	26,903
Less amounts representing interest	(5,243)
Lease Liability	21,660
Maturities of Finance lease liabilities
2019 (excluding the six months ended June 30, 2019)	91
2020	183
2021	183
2022	60
2023	18
Thereafter	6
Total undiscounted lease payments	541
Less amounts representing interest	(56)
Lease Liability	$ 485

1. Summary of Significant Acc_8

1. Summary of Significant Accounting Policies (Details - Lease - Statement of Operations) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Operating lease cost	$ 1,886	$ 1,795	$ 3,775	$ 3,505
Finance lease cost	44	0	44	0
Total lease cost	$ 1,930	$ 1,795	$ 3,819	$ 3,505

1. Summary of Significant Acc_9

1. Summary of Significant Accounting Policies (Details - Lease - Cash flow) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,890	$ 3,776
Operating cash flows from finance leases	36	36
Financing cash flows from finance leases	$ 8	$ 8

1. Summary of Significant Ac_10

1. Summary of Significant Accounting Policies (Details - Options outstanding) - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Number of Shares
Outstanding options, beginning balance	14,421,000
Granted	0
Exercised	(483,000)	(312,500)
Forfeited	0
Outstanding options, ending balance	13,938,000
Options exercisable at the end of period	11,742,000
Weighted Average Exercise Price
Outstanding options, beginning balance	$ 4.57
Granted
Exercised	0.86
Forfeited
Outstanding options, ending balance	4.69
Options exercisable at the end of period	$ 4.87
Weighted Average Remaining Contractual Term
Weighted average remaining contractual term options outstanding	3 years 6 months 7 days
Weighted average remaining contractual term options exercisable	3 years 2 months 19 days

1. Summary of Significant Ac_11

1. Summary of Significant Accounting Policies (Details - Stock purchases) - Common Stock [Member] - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Total stock purchases	378,470	838,497
Average price for total stock purchases	$ 3.97	$ 3.87
Open Market Purchases [Member]
Total stock purchases	335,546	714,898
Average price for total stock purchases	$ 3.95	$ 3.81
Shares redeemed upon net exercise of stock options
Total stock purchases	18,424	33,599
Average price for total stock purchases	$ 3.76	$ 4.37
Other Purchases [Member]
Total stock purchases	24,500	90,000
Average price for total stock purchases	$ 4.20	$ 4.13

1. Summary of Significant Ac_12

1. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Stock based compensation costs	$ 481	$ 1,000	$ 1,119	$ 2,153
Unrecognized stock-based compensation costs	2,500		$ 2,500
Unrecognized stock-based compensation costs amortization period			2 years
Aggregate intrinsic value outstanding	7,000		$ 7,000
Aggregate intrinsic value exercisable	$ 6,500		$ 6,500
Options Exercised			483,000	312,500
Total intrinsic value of options exercised			$ 1,400	$ 860
Shares available for future grants	2,873,000		2,873,000
Weighted Average Discount Rate Operating lease	5.00%		5.00%
Weighted Average Discount Rate Finance lease	6.70%		6.70%

2. Finance Receivables (Details

2. Finance Receivables (Details - Finance receivables) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Automobile finance receivables, net of unearned interest	$ 1,177,484	$ 1,518,395
Unearned acquisition fees and originations costs	2,769	3,690
Finance Receivables	$ 1,180,253	$ 1,522,085

2. Finance Receivables (Detai_2

2. Finance Receivables (Details - Delinquency status) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current	$ 948,130	$ 1,262,730
Finance receivables	1,177,484	1,518,395
Financing Receivables, 31 - 60 Days Past Due [Member]
Finance receivables	135,066	157,688
Financing Receivables, 61 - 90 Days Past Due [Member]
Finance receivables	65,294	66,134
Financing Receivables, 91+ Days Past Due [Member]
Finance receivables	$ 28,994	$ 31,843

2. Finance Receivables (Detai_3

2. Finance Receivables (Details - Finance credit losses) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Receivables [Abstract]
Allowance for credit losses, beginning balance	$ 48,196	$ 100,844	$ 67,376	$ 109,187
Provision for credit losses	20,489	35,531	44,445	76,038
Charge-offs	(50,409)	(53,493)	(102,919)	(109,595)
Recoveries	14,388	11,494	23,762	18,746
Allowance for credit losses, ending balance	$ 32,664	$ 94,376	$ 32,664	$ 94,376

2. Finance Receivables (Detai_4

2. Finance Receivables (Details - Repossessions) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Gross balance of repossessions in inventory	$ 32,359	$ 33,462
Allowance for losses on repossessed inventory	(23,886)	(24,564)
Net repossessed inventory included in other assets	$ 8,473	$ 8,898

2. Finance Receivables (Detai_5

2. Finance Receivables (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Finance receivables	$ 29,000	$ 31,800

3. Securitization Trust Debt (D

3. Securitization Trust Debt (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2019	Dec. 31, 2018
"Securitization trust debt," and components of debt
Receivables Pledged at end of period	[1]	$ 2,197,620
Initial Principal		5,096,093
Outstanding Principal		$ 2,089,210	$ 2,075,409
CPS 2014-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	June 2021
Receivables Pledged at end of period	[1]	$ 0
Initial Principal		180,000
Outstanding Principal		$ 0	15,328
Weighted Average Contractual Interest Rate		0.00%
CPS 2014-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	September 2021
Receivables Pledged at end of period	[1]	$ 17,621
Initial Principal		202,500
Outstanding Principal		$ 16,123	24,051
Weighted Average Contractual Interest Rate		5.01%
CPS 2014-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	December 2021
Receivables Pledged at end of period	[1]	$ 30,305
Initial Principal		273,000
Outstanding Principal		$ 29,187	40,896
Weighted Average Contractual Interest Rate		4.82%
CPS 2014-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	March 2022
Receivables Pledged at end of period	[1]	$ 34,885
Initial Principal		267,500
Outstanding Principal		$ 34,054	46,489
Weighted Average Contractual Interest Rate		5.17%
CPS 2015-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	June 2022
Receivables Pledged at end of period	[1]	$ 40,029
Initial Principal		245,000
Outstanding Principal		$ 38,299	52,448
Weighted Average Contractual Interest Rate		4.92%
CPS 2015-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	September 2022
Receivables Pledged at end of period	[1]	$ 49,220
Initial Principal		250,000
Outstanding Principal		$ 49,129	64,591
Weighted Average Contractual Interest Rate		4.87%
CPS 2015-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	December 2022
Receivables Pledged at end of period	[1]	$ 70,902
Initial Principal		300,000
Outstanding Principal		$ 70,694	90,639
Weighted Average Contractual Interest Rate		5.31%
CPS 2016-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	March 2023
Receivables Pledged at end of period	[1]	$ 93,772
Initial Principal		329,460
Outstanding Principal		$ 93,582	119,444
Weighted Average Contractual Interest Rate		5.56%
CPS 2016-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	June 2023
Receivables Pledged at end of period	[1]	$ 109,505
Initial Principal		332,690
Outstanding Principal		$ 106,586	135,688
Weighted Average Contractual Interest Rate		5.91%
CPS 2016-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	September 2023
Receivables Pledged at end of period	[1]	$ 109,169
Initial Principal		318,500
Outstanding Principal		$ 107,065	136,114
Weighted Average Contractual Interest Rate		5.73%
CPS 2016-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	April 2024
Receivables Pledged at end of period	[1]	$ 86,057
Initial Principal		206,325
Outstanding Principal		$ 83,989	104,645
Weighted Average Contractual Interest Rate		4.26%
CPS 2017-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	April 2024
Receivables Pledged at end of period	[1]	$ 93,378
Initial Principal		206,320
Outstanding Principal		$ 91,757	113,527
Weighted Average Contractual Interest Rate		4.38%
CPS 2017-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	December 2023
Receivables Pledged at end of period	[1]	$ 113,890
Initial Principal		225,170
Outstanding Principal		$ 101,091	127,726
Weighted Average Contractual Interest Rate		3.74%
CPS 2017-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	September 2024
Receivables Pledged at end of period	[1]	$ 115,032
Initial Principal		224,825
Outstanding Principal		$ 104,137	131,845
Weighted Average Contractual Interest Rate		3.69%
CPS 2017-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	June 2024
Receivables Pledged at end of period	[1]	$ 116,795
Initial Principal		196,300
Outstanding Principal		$ 106,895	132,919
Weighted Average Contractual Interest Rate		3.42%
CPS 2018-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	March 2025
Receivables Pledged at end of period	[1]	$ 124,648
Initial Principal		190,000
Outstanding Principal		$ 115,610	142,643
Weighted Average Contractual Interest Rate		3.35%
CPS 2018-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	December 2024
Receivables Pledged at end of period	[1]	$ 145,953
Initial Principal		201,823
Outstanding Principal		$ 139,191	167,809
Weighted Average Contractual Interest Rate		3.75%
CPS 2018-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	September 2025
Receivables Pledged at end of period	[1]	$ 176,932
Initial Principal		230,275
Outstanding Principal		$ 167,341	204,418
Weighted Average Contractual Interest Rate		3.82%
CPS 2018-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	June 2025
Receivables Pledged at end of period	[1]	$ 203,821
Initial Principal		233,730
Outstanding Principal		$ 188,878	224,189
Weighted Average Contractual Interest Rate		3.86%
CPS 2019-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	March 2026
Receivables Pledged at end of period	[1]	$ 242,554
Initial Principal		254,400
Outstanding Principal		$ 225,776	0
Weighted Average Contractual Interest Rate		3.82%
CPS 2019-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	[2]	June 2026
Receivables Pledged at end of period	[1]	$ 223,152
Initial Principal		228,275
Outstanding Principal		$ 219,826	$ 0
Weighted Average Contractual Interest Rate		3.00%
[1]	Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet.
[2]	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 $421.4 million in 2019, $693.2 million in 2020, $473.3 million in 2021, $272.5 million in 2022, $181.7 million in 2023, $31.7 million in 2024, $3.4 million in 2025

3. Securitization Trust Debt _2

3. Securitization Trust Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Expected finance receivable payments 2019	$ 421,400
Expected finance receivable payments 2020	693,200
Expected finance receivable payments 2021	473,300
Expected finance receivable payments 2022	272,500
Expected finance receivable payments 2023	181,700
Expected finance receivable payments 2024	31,700
Expected finance receivable payments 2025	3,400
Restricted cash	125,500
Securitization Trust Debt [Member]
Debt issuance costs	$ 11,900	$ 11,800

4. Debt (Details - Debt outstan

4. Debt (Details - Debt outstanding) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Warehouse lines of credit	$ 139,224	$ 136,847
Residual interest financing	39,292	39,106
Subordinated renewable notes	14,368	17,290
Total debt outstanding	195,128	195,373
Warehouse lines of credit [Member]
Warehouse lines of credit	$ 41,509	38,198
Interest rate	5.50% over one month Libor (Minimum 6.50%)
Maturity date	February 2021
Warehouse lines of credit (2) [Member]
Warehouse lines of credit	$ 74,851	99,885
Interest rate	3.00% over one month Libor (Minimum 3.75%)
Maturity date	September 2020
Warehouse lines of credit (3) [Member]
Warehouse lines of credit	$ 24,400	0
Interest rate	6.75% over a commercial paper rate (Minimum 7.75%)
Maturity date	November 2019
Residual interest financing [Member]
Residual interest financing	$ 40,000	40,000
Interest rate	8.60%
Maturity date	January 2026
Subordinated renewable notes [Member]
Subordinated renewable notes	$ 14,368	$ 17,290
Interest rate	Weighted average rate of 8.71% and 8.53% at June 30, 2019 and December 31, 2018, respectively
Maturity date	Weighted average maturity of September 2021 and January 2021 at June 30, 2019 and December 31, 2018, respectively

4. Debt (Details Narrative)

4. Debt (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Warehouse lines of credit	$ 139,224	$ 136,847
Residual interest financing [Member]
Unamortized debt issuance costs	708	894
Warehouse Lines of Credit [Member]
Unamortized debt issuance costs	1,500	$ 1,200
Credit line maximum borrowing amount	100,000
Warehouse lines of credit	$ 41,500
Credit line expiration date	Feb. 28, 2021

5. Interest Income and Intere_3

5. Interest Income and Interest Expense (Details - Interest income) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Components of interest income
Interest on finance receivables	$ 55,660	$ 87,784	$ 117,950	$ 184,972
Interest on finance receivables at fair value	27,978	8,832	50,793	12,340
Other interest income	811	396	1,551	606
Interest income	$ 84,449	$ 97,012	$ 170,294	$ 197,918

5. Interest Income and Intere_4

5. Interest Income and Interest Expense (Details - Interest expense) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total interest expense	$ 27,703	$ 25,187	$ 54,993	$ 49,249
Securitization Trust Debt [Member]
Total interest expense	24,466	22,255	48,454	44,084
Warehouse Lines of Credit [Member]
Total interest expense	1,960	2,135	3,980	4,023
Residual interest financing [Member]
Total interest expense	955	452	1,911	452
Subordinated renewable notes [Member]
Total interest expense	$ 322	$ 345	$ 648	$ 690

6. Earnings Per Share (Details)

6. Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings per share:
Weighted average number of common shares outstanding during the period used to compute basic earnings per share	22,362	21,178	22,302	21,375
Incremental common shares attibutable to exercise of outstanding options and warrants	1,616	3,945	1,817	4,018
Weighted average number of common shares used to compute diluted earnings per share	23,978	25,123	24,119	25,393

6. Earnings Per Share (Details

6. Earnings Per Share (Details Narrative) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings per share:
Antidilutive common stock equivalents	10,700	10,200	10,500	9,700

7. Income Taxes (Details Narrat

7. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0		$ 0		$ 0
Deferred tax asset	17,100		17,100
U.S. federal deferred tax assets	12,200		12,200
State deferred tax assets	4,900		4,900
Income tax expense	$ 970	$ 1,489	$ 1,907	$ 2,901
Effective income tax rate			35.00%	32.00%

9. Fair Value Measurements (Det

9. Fair Value Measurements (Details - Reconciliation of Finance Receivables) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Finance receivables, beginning balance	$ 997,552	$ 209,847	$ 821,066	$ 0
Finance receivables at fair value acquired during period	249,873	218,001	494,626	430,611
Payments received on finance receivables at fair value	(68,005)	(10,331)	(117,505)	(12,973)
Net interest income accretion on fair value receivables	(21,055)	(4,622)	(39,822)	(4,743)
Mark to fair value	0	0	0	0
Finance receivables, ending balance	$ 1,158,365	$ 412,895	$ 1,158,365	$ 412,895

9. Fair Value Measurements (D_2

9. Fair Value Measurements (Details - Finance Receivables to Their Contractual Balances) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	$ 1,158,365	$ 997,552	$ 821,066	$ 412,895	$ 209,847	$ 0
Contractual Balance [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	$ 1,190,231		$ 829,039

9. Fair Value Measurements (D_3

9. Fair Value Measurements (Details - Level 3 Fair Value Measurements) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Finance receivables measured at fair value	$ 1,158,365	$ 821,066	$ 997,552	$ 412,895	$ 209,847	$ 0
Fair Value [Member] | Level 3 [Member]
Finance receivables measured at fair value	$ 1,158,365	$ 821,066
Fair Value [Member] | Level 3 [Member] | Discount Rate [Member]
Unobservable Inputs	8.9% - 11.12%	8.9% - 9.9%
Fair Value [Member] | Level 3 [Member] | Cumulative Net Losses [Member]
Unobservable Inputs	15% - 16.10%	15% - 16%

9. Fair Value Measurements (D_4

9. Fair Value Measurements (Details - Delinquency status) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Finance receivables measured at fair value current	$ 1,104,196	$ 790,727
Finance receivables measured at fair value	1,190,231	829,039
Financing Receivables, 31 - 60 Days Past Due [Member]
Finance receivables measured at fair value	56,156	26,285
Financing Receivables, 61 - 90 Days Past Due [Member]
Finance receivables measured at fair value	20,782	8,350
Financing Receivables, 91+ Days Past Due [Member]
Finance receivables measured at fair value	$ 9,097	$ 3,677

9. Fair Value Measurements (D_5

9. Fair Value Measurements (Details - Fair values) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 9,745	$ 12,787
Restricted cash and equivalents	125,486	117,323
Finance receivables, net	1,110,331	1,434,631
Accrued interest receivable	16,394	31,969
Liabilities:
Warehouse lines of credit	139,224	136,847
Accrued interest payable	5,268	4,819
Residual interest financing	39,292	39,106
Securitization trust debt	2,098,476	2,051,920
Subordinated renewable notes	14,368	17,290
Level 1 [Member]
Assets:
Cash and cash equivalents	9,745	12,787
Restricted cash and equivalents	125,486	117,323
Finance receivables, net	0	0
Accrued interest receivable	0	0
Liabilities:
Warehouse lines of credit	0	0
Accrued interest payable	0	0
Residual interest financing	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
Residual interest financing	0	0
Securitization trust debt	0	0
Subordinated renewable notes	0	0
Level 3 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash and equivalents	0	0
Finance receivables, net	1,110,331	1,434,631
Accrued interest receivable	16,394	31,969
Liabilities:
Warehouse lines of credit	139,224	136,847
Accrued interest payable	5,268	4,819
Residual interest financing	39,292	39,106
Securitization trust debt	2,098,476	2,051,920
Subordinated renewable notes	14,368	17,290
Carrying Value [Member]
Assets:
Cash and cash equivalents	9,745	12,787
Restricted cash and equivalents	125,486	117,323
Finance receivables, net	1,147,589	1,454,709
Accrued interest receivable	16,394	31,969
Liabilities:
Warehouse lines of credit	139,224	136,847
Accrued interest payable	5,268	4,819
Residual interest financing	39,292	39,106
Securitization trust debt	2,077,286	2,063,627
Subordinated renewable notes	$ 14,368	$ 17,290

9. Fair Value Measurements (D_6

9. Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Finance receivables related to reposessed vehicles in inventory	$ 32,359	$ 33,462
Valuation adjustment, loss allowance	$ 23,886	24,564
Recovery rate	27.00%
Estimated fair value and carrying amount of repossed inventory	$ 8,473	$ 8,898