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 March 31, 2017, the Company has one class of purchased receivables. There were no purchased receivables past due at March 31, 2017 or December 31, 2016, respectively, and there were no restructured purchased receivables at March 31, 2017 or December 31, 2016.

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 March 31, 2017, 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)	March 31, 2017			December 31, 2016
Purchased receivables		$14,668			$20,662
Reserve for purchased receivable losses	(183		)	(171		)
Total		$14,485			$20,491

The following table sets forth information regarding changes in the purchased receivable reserve for the three month periods ending March 31, 2017 and 2016, respectively:



	Three Months Ended March 31,
(In Thousands)	2017		2016
Balance at beginning of period		$171		$181
Charge-offs	—		—
Recoveries	—		—
Charge-offs net of recoveries	—		—
Reserve for (recovery from) purchased receivables	12		(12		)
Balance at end of period		$183		$169

The Company did not record any charge-offs in the first three months of 2017 and 2016, respectively.