Consumer Portfolio Services Raises Warehouse Lines Above $1 Billion

Consumer Portfolio Services, Inc. (CPSS) expanded its Citibank and Capital One warehouse facilities to a combined $1.026 billion, giving the auto lender its first capacity above $1 billion as third-quarter loan originations reached a record. CEO and Chairman Charles Bradley discussed the increases on the company’s Oct. 26 earnings call.

The Citibank line rose to $508 million from $335 million, and Capital One’s line increased to $518 million from $390 million. Together, the facilities’ limits were $301 million higher than their previous combined $725 million. Bradley said the company had not previously reached $1 billion in warehouse capacity.

CPSS originated $815 million in auto loans during the quarter, compared with $391 million in the same period a year earlier and $758 million in the second quarter. President, Chief Operating Officer and Chief Legal Officer Michael Lavin said the company had surpassed its previous $2 billion origination record, set in 2022, during the first nine months of 2026. Lavin also said the approval rate had declined from the low 50% range to the low 40% range over the preceding six months.

Revenue increased 22% to $131.9 million from $108.4 million a year earlier. Net income rose 42% to $7 million from $4.9 million. The fair value of CPSS’ loan portfolio reached $4.6 billion, with an 11.3% yield net of credit losses. Interest expense was $70 million, compared with $59 million in the year-earlier quarter, CFO and Executive Vice President Denesh Bharwani said.

Bradley described the fourth quarter as lighter and said the company did not plan to double its growth next year. He said CPSS would continue expanding in a measured way. As interest rates rose, the company increased some annual percentage rates and fees to help preserve margins. Bradley also identified inflation and interest rates as factors management was watching closely.