Consumer Portfolio Services saw a “very strong” first quarter in terms of originations growth, Chief Executive Charles Bradley said during yesterday’s first quarter earnings call.
The company reported $312 million in originations in the first quarter, up from $234 at the same time a year prior.
“It started in about February, continued through March, and it’s continuing into April,” Bradley said during the call. “Whether that’s because they [consumers] have come up with a different way to distribute tax refunds, it’s really hard to figure out. And to be honest, I don’t know that we really care. What we care is, we’ve got a nice little kick in the first quarter, which we didn’t have in the previous two years.”
CPS also saw a “slight improvement” in delinquencies on a quarterly basis at 8.97%, down from 4Q15’s 9.53%, but still up from the same time a year prior when delinquencies were at 6.86%.
Despite the uptick in delinquencies, the company is back to pre-recession levels in terms of origination volume, Bradley said, with March setting a record for loans booked.
Las Vegas-based CPS is entering its 25th year in business, and as the industry changes, that experience will be a benefit to the company, according to Bradley.
“We know what we’re doing at this point and we’re starting with our cycle, it looks like a few people might be having few problems, we’re not,” he said. “So, I think that 25 years certainly is going to come into play as we go forward.”
