Purchased Receivables

Purchased receivables are carried at their principal amount outstanding, net of a reserve for anticipated losses that have not yet been identified, and have a maturity of less than one year. Purchased receivable balances are charged against this reserve when management believes that collection of principal is unlikely. Management evaluates the adequacy of the reserve for purchased receivable losses based on historical loss experience by class of receivable and its assessment of current economic conditions. As of September 30, 2015, the Company has one class of purchased receivables. There were no purchased receivables past due at September 30, 2015 or December 31, 2014, respectively, and there were no restructured purchased receivables at September 30, 2015 or December 31, 2014.

Income on purchased receivables is accrued and recognized on the principal amount outstanding using an effective interest method except when management believes doubt exists as to the collectability of the income or principal. As of September 30, 2015, the Company is accruing income on all purchased receivable balances outstanding.

The following table summarizes the components of net purchased receivables for the periods indicated:



(In Thousands)	September 30, 2015			December 31, 2014
Purchased receivables		$13,956			$15,543
Reserve for purchased receivable losses	(224		)	(289		)
Total		$13,732			$15,254

The following table sets forth information regarding changes in the purchased receivable reserve for the three and nine month periods ending September 30, 2015 and 2014, respectively:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In Thousands)	2015			2014		2015			2014
Balance at beginning of period		$247			$242		$289			$273
Charge-offs	—			—		—			(240		)
Recoveries	—			—		30			3
Charge-offs net of recoveries	—			—		30			(237		)
Reserve for (recovery from) purchased receivables	(23		)	241		(95		)	447
Balance at end of period		$224			$483		$224			$483

The Company did not record any charge-offs in the first nine months of 2015. The Company recorded one partial charge-off for $215,000 and one full charge-off for $25,000 in the first nine months of 2014.