Consumer Portfolio Services posted gains of more than 20 percent in both earnings per diluted share and revenue during the third quarter. The finance company bought more paper in Q3 compared to previous time frames and watched delinquencies and charge-offs rise only marginally.

As a result, CPS chairman and chief executive officer Brad Bradley said the company was “pleased” with what transpired.

On Tuesday, CPS announced earnings of $7.8 million, or $0.24 per diluted share, for its third quarter that ended Sept. 30. Those figures compared to net income of $5.9 million, or $0.19 per diluted share, in the year-ago quarter, representing a 26-percent increase in earnings per diluted share.

The company mentioned earnings for the first nine months of 2014 came in at $21.5 million, or $0.67 per diluted share, as compared to earnings of $14.5 million, or $0.46 per diluted share, for the same period last year.

CPS reported Q3 revenues rose 20.3 percent to $77.1 million, an increase of $13.0 million compared to $64.1 million for the third quarter of 2013.

The company’s total Q3 operating expenses moved up to $63.2 million, an increase of $9.7 million or 18.2 percent. That expense level compared to $53.5 million for the third quarter of last year.

And because of those figures, CPS determined its Q3 pretax income spiked 30.7 percent year-over-year to $13.8 million, up from $10.6 million.

Looking more at nine-month figures, CPS reported that total revenues climbed to $216.8 million, up from $189.1 million through the first nine months of last year. However, in the 2013 period, the company acknowledged revenues included $10.9 million from a gain on cancellation of debt.

Excluding that gain, officials tallied revenues for the nine-month span that ended Sept. 30 and found an increase of $38.6 million, or 21.7 percent, over the prior year.

CPS made a $15.4 million push in total expenses through the first nine months of this year, increasing them from $163.5 million to $178.9 million. But again a year ago, operating expenses included a provision for contingent liabilities of $9.7 million.

So excluding the provision for contingent liabilities, CPS determined operating expenses for the first nine months of this year increased $25.0 million, or 16.3 percent, compared to a year earlier.

That method left the company’s pretax income for nine months at $37.9 million, compared to $25.6 million.

Looking elsewhere at the company’s most recent quarterly performance, CPS purchased $279.3 million of new contracts in Q3 — that’s up from $211.4 million during the second quarter and $206.8 million in the year-ago period.

The activity left the company's managed receivables $1.519 billion as of Sept. 30, an increase from $1.374 billion as of June 30 and $1.167 billion as of the close of last year’s third quarter.

Officials noted annualized net charge-offs for the third quarter came in at 6.18 percent of the average owned portfolio as compared to 4.89 percent a year earlier.

The company’s delinquencies greater than 30 days (including repossession inventory) stood at 6.66 percent of the total owned portfolio as of Sept. 30, 2014, as compared to 6.44 percent as of September 30, 2013.

As previously reported during September, CPS closed its third term securitization transaction of the year and the 14th transaction since April 2011.

In the senior subordinate structure, a special purpose subsidiary sold five tranches of asset-backed notes totaling $273.0 million. The notes are secured by automobile receivables purchased by CPS and have a weighted average effective coupon of approximately 2.71 percent. The transaction has initial credit enhancement consisting of a cash deposit equal to 1.00 percent of the original receivable pool balance.

Officials pointed out the final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 4.00 percent of the then-outstanding receivable pool balance.

The transaction was CPS’ second consecutive senior subordinate securitization to receive a triple-A rating on the senior class of notes.

After considering all of those metrics and development again, Bradley said, “We are pleased with our operating results for the third quarter of 2014.

“We significantly increased our new contract purchases and managed portfolio, and recorded our 12th consecutive quarter of earnings growth,” he continued.

And Bradley closed by mentioning another positive development for CPS.

“During the quarter we also completed an early renewal of our $100 million revolving credit agreement with Citibank, extending the revolving period of that facility to August 2015,” Bradley said.