What changed in this filing

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Item 1. Business

2023-03-15 compared with 2022-03-16 · 78 added, 69 removed, 781 unchanged (16% of the section changed)

22 unchanged sentences

Contract Purchases and Outstanding Managed Portfolio

$ in thousands

Contracts Purchased in Period

Managed Portfolio at Period End

Our principal executive offices

142 unchanged sentences

December 31, 2021

North Carolina

(1) Percentages may not total to 100.0% due to rounding.

5 unchanged sentences

($ in millions)

North Carolina

(1) Percentages may not total to 100.0% due to rounding.

49 unchanged sentences

higher than the Super Alpha program.

program accommodates applicants with past non-performing credit, but who demonstrate a stronger history of recent performing credit than

the Preferred program.

Contract interest rates and dealer acquisition fees are lower, and the maximum loan amount is somewhat higher than

the Preferred program.

Our upper credit tier products,

which are our Preferred, Super Alpha, Alpha Plus and Alpha programs, accounted for approximately 74% of our new contract acquisitions

which are our Meta, Preferred, Super Alpha, Alpha Plus and Alpha programs, accounted for approximately 80% of our new contract acquisitions

for our own portfolio in 2022, 75% in 2021, and 75% in 2020, measured by aggregate amount financed.

44 unchanged sentences

than 200,000 miles.

The maximum term of a purchased contract is 75 months, although we consider the loan to value and mileage as significant

factors in determining the maximum term of a contract.

Automobile contract purchase criteria are subject to change from time to time as

circumstances may warrant.

Prior to purchasing an automobile contract, our funding staff verify the customer's employment, income, residency,

and credit information by contacting various parties noted on the customer's application, credit information bureaus and other sources.

In addition, we contact each customer by telephone to confirm that the customer understands and agrees to the terms of the related automobile

The maximum term of a purchased contract is 78 months, although we consider the program, amount financed, and mileage

as significant factors in determining the maximum term of a contract.

Automobile contract purchase criteria are subject to change from

time to time as circumstances may warrant.

Prior to purchasing an automobile contract, our funding staff verify the customer's employment,

income, residency, and credit information by contacting various parties noted on the customer's application, credit information bureaus

and other sources.

In addition, we contact each customer by telephone to confirm that the customer understands and agrees to the terms

of the related automobile contract.

During this " welcome call, "

42 unchanged sentences

Since January 2021, our contract purchase

levels have returned to pre-pandemic levels.

levels have returned to or exceeded pre-pandemic levels.

Servicing and Collections

119 unchanged sentences

of all such automobile contracts that we own as of the respective dates shown.

Delinquency, Repossession

and Extension Experience

Delinquency and Extension Experience (1)

Total Managed Portfolio

Managed Portfolio (Excludes Third Party Portfolio)

December 31, 2022

3 unchanged sentences

Number of Contracts

Delinquency Experience

Number of Contracts

(Dollars in thousands)

Delinquency Experience

Gross servicing portfolio (1)

11 unchanged sentences

Total accounts with extensions

(1) All amounts and percentages are based on the

amount remaining to be repaid on each automobile contract.

The information in the table represents

the gross principal amount of all automobile contracts we purchased, including automobile

contracts we subsequently sold in securitization transactions that we continue to service.

The table does not include certain contracts we have serviced for third parties on which

we earn servicing fees only, and have no credit risk.

(2) 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.

(1) All amounts and percentages

are based on the amount remaining to be repaid on each automobile contract.

The information in the table represents the gross principal

amount of all automobile contracts we purchased, including automobile contracts we subsequently sold in securitization transactions that

we continue to service.

The table does not include certain contracts we have serviced for third parties on which we earn servicing fees

only, and have no credit risk.

(2) 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.

Automobile contracts less than 31 days delinquent are not included.

The delinquency aging categories shown in the tables reflect the effect of extensions.

in repossession represents the contract balance on financed vehicles that have been repossessed

but not yet liquidated.

not recognize interest income on accounts past due more than 90 days.

The delinquency

aging categories shown in the tables reflect the effect of extensions.

(3) Amount in repossession represents the contract balance on financed vehicles that have been repossessed but not yet liquidated.

(4) We do not recognize interest income on accounts past due more than 90 days.

Net Credit Loss Experience (1)

9 unchanged sentences

Average portfolio outstanding

$ 1,631,491 3

Net charge-offs as a percentage of average portfolio (3)

4 unchanged sentences

Net charge-offs as a percentage of average portfolio (3)

_________________

(1) All amounts and percentages are based on the principal amount scheduled to be paid on each automobile contract contracts.

10 unchanged sentences

In general, an obligor will not be

permitted more than two such extensions in any 12-month period and no more than six over the life of the contract.

permitted more than two such extensions in any 12-month period and no more than eight over the life of the contract.

The only modification

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The table below summarizes the status, as of December 31, 2022, for accounts that received extensions from 2012 through 2021:

Period of Extension

# of Extensions Granted

1 unchanged sentence

% Active or Paid Off at December

Charged Off > 6 Months After Extension

Charged Off > 6 Months

After Extension

Charged Off <= 6 Months After Extension

% Charged Off > 6 Months

After Extension

Avg Months to Charge Off Post Extension

Charged Off <= 6 Months

After Extension

% Charged Off <= 6 Months

After Extension

Avg Months to Charge Off

Post Extension

We view these results as a

8 unchanged sentences

ultimately charged off, we consider accounts that charged off more than six months after the extension to be at least partially successful.

In such cases, despite the ultimate loss, we received additional payments of principal and interest that otherwise we would not have received.

Additional information about our extensions is provided in the tables

In such cases, despite the ultimate loss, we received additional payments of principal and interest that otherwise we would not have

Additional information about our extensions is provided in the tables below:

For the Year Ended

10 unchanged sentences

Number of Contracts

(Dollars in thousands)

6 unchanged sentences

Gross servicing portfolio

Coronavirus Pandemic

Beginning in March 2020, we experienced a significant

increase in the numbers of our obligors who sought an extension because of the pandemic and related economic shutdowns.

By June of 2020,

the monthly volume of extensions we granted had reverted to levels at or below the prior year and have remained so through December 2021.

Government mandated shutdowns of large portions

of the United States economy has impaired and will likely continue to impair the ability of obligors under our automobile contracts to

make their monthly payments.

The extent to which that ability will be impaired, and the extent to which public ameliorative measures such

as stimulus payments and enhanced unemployment benefits may restore such ability, cannot be estimated.

Non-Accrual Receivables

60 unchanged sentences

Number of Term Securitizations

Amount of Receivables

$ in thousands

8 unchanged sentences

Securitization Trust 2018-1, consist of a single class with a coupon of 8.595%.

As of December 31, 2021, the remaining notes had a principal

balance of $4.3 million.

The remaining balance on the notes were paid in full on

February 16, 2022.

On June 30, 2021, we completed

12 unchanged sentences

funding capacity is $400 million, comprising two credit facilities.

The first $100 million credit facility was established in May 2012.

This facility was most recently renewed in December 2020, extending the revolving period to December 2022, and adding an amortization

period through December 2023.

In November 2015, we entered into another $100 million facility.

This facility was most recently renewed

in February 2022, extending the revolving period to January 2024, followed by an amortization period to January 2028.

We previously had a third $100

million facility.

This facility was established in April 2015 and was renewed in April 2017 and again in February 2019, extending the

revolving period to February 2021.

We repaid this facility in full at its maturity in 2021.

The first credit facility was established in May 2012.

This facility

was most recently renewed in July 2022, extending the revolving period to July 2024, with an optional amortization period through July

In addition, the capacity was doubled from $100 million to $200 million at the July 2022 renewal.

In November 2015, we entered

into another $100 million facility.

This facility was most recently renewed in February 2022, extending the revolving period to January

2024, followed by an amortization period to January 2026.

In June 2022, we doubled the capacity for this facility from $100 million to

$200 million.

In a securitization and in

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Broken out by function, our human capital was allocated thus:

9 were senior

management personnel;

senior management personnel;

407 were servicing personnel;

182 were automobile contract origination personnel;

105 were sales personnel and program

development (68 of whom were sales representatives);

67 were various administrative personnel including human resources, legal, accounting

127 were sales personnel

and program development (78 of whom were sales representatives);

65 were various administrative personnel including human resources, legal,

accounting and systems.

Compensation and benefits

3 unchanged sentences

Employee Engagement

Our means of evaluating our human capital resources include, on an individual basis, annual performance reviews, and, on an aggregate

basis, a confidential biennial employee climate survey.

The survey results are reviewed by senior management and used to assist in reviewing

Our means of evaluating our human capital resources include, on an individual basis, annual performance reviews and annual meetings with

senior management on or close to the employee’s anniversary date.

On an aggregate basis, a new hire survey and department

round table meetings.

The feedback from the meetings and survey results are reviewed by senior management and used to assist in reviewing

our human capital strategies, programs, and practices.

3 unchanged sentences

We are not a party to any collective bargaining agreement.

Available Information

Our internet address is www.consumerportfolio.com .

We make available free of charge on our internet web site our annual report on Form 10-K, quarterly reports on Form 10-Q, current

reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities

Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file such material with, or furnish it to,

the Securities and Exchange Commission.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business