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, 2016, the Company has one class of purchased receivables. There were no purchased receivables past due at September 30, 2016 or December 31, 2015, respectively, and there were no restructured purchased receivables at September 30, 2016 or December 31, 2015.

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, 2016, 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, 2016			December 31, 2015
Purchased receivables		$15,663			$13,507
Reserve for purchased receivable losses	(163		)	(181		)
Total		$15,500			$13,326

The following table sets forth information regarding changes in the purchased receivable reserve for the three and nine month periods ending September 30, 2016 and 2015, respectively:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In Thousands)	2016		2015			2016			2015
Balance at beginning of period		$163		$247			$181			$289
Charge-offs	—		—			—			—
Recoveries	—		—			—			30
Charge-offs net of recoveries	—		—			—			30
Reserve for (recovery from) purchased receivables	—		(23		)	(18		)	(95		)
Balance at end of period		$163		$224			$163			$224

The Company did not record any charge-offs in the first nine months of 2016 and 2015, respectively.