Purchased Receivables

9 Months Ended

Sep. 30, 2025

Purchased receivables are carried at their principal amount outstanding, net of an ACL, and have a maturity of less than one year. 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. There were six nonperforming purchased receivables with a balance of $2.3 million as of September 30, 2025 and there were four nonperforming purchased receivable with a balance of $3.8 million as of December 31, 2024 for which management was not accruing income.

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


(In Thousands)	September 30, 2025	December 31, 2024
Purchased receivables	$109,977	$77,727
Allowance for credit losses - purchased receivables	(1,924)	(3,649)
Total	$108,053	$74,078

The following table sets forth information regarding changes in the ACL on purchased receivables for the periods indicated:


	Three Months Ended September 30,		Nine Months Ended September 30,
(In Thousands)	2025	2024	2025	2024
Balance at beginning of period	$3,432	$—	$3,649	$—
Adjustment related to PCD collections payable to sellers1	(1,513)	—	(1,513)	—
Charge-offs	—	—	(281)	—
Recoveries	20	—	20	—
Charge-offs net of recoveries	20	—	(261)	—
(Benefit) / provision for purchased receivables	(15)	—	49	—
Balance at end of period	$1,924	$—	$1,924	$—

1Represents a reduction in the allowance for credit losses on a purchased credit deteriorated purchased receivable acquired in 2024 in connection with the Sallyport acquisition. Collections received during the period presented above are contractually payable to the sellers under the purchase agreement if collected within one year of the acquisition of SCF. Accordingly, the decrease in the allowance was offset by the recognition of a liability to the sellers, and no benefit was recognized in the provision for credit losses.