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 two nonperforming purchased receivables with a balance of $382,000 as of September 30, 2026 and there was one nonperforming purchased receivable with a balance of $67,000 as of December 31, 2025 for which management was not accruing income.


(In Thousands)	September 30, 2026	December 31, 2025
Purchased receivables	$102,619	$101,642
Allowance for credit losses - purchased receivables	(376)	—
Total	$102,243	$101,642

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)	2026	2025	2026	2025
Balance at beginning of period	$610	$3,432	$—	$3,649
Adjustment related to PCD collections payable to sellers1	—	(1,513)	—	(1,513)
Charge-offs	—	—	—	(281)
Recoveries	—	20	5	20
Charge-offs net of recoveries	—	20	5	(261)
Foreign currency translation adjustment	5	—	(15)	—
Provision (benefit) for purchased receivables	(239)	(15)	386	49
Balance at end of period	$376	$1,924	$376	$1,924

1Represents a reduction in the ACL on a PCD purchased receivable acquired in 2024 in connection with the acquisition of Sallyport Commercial Finance, LLC (“SCF”). 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.