Unearned Discount


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Unearned Discount

A finance charge a lender assesses at the beginning of a loan, but only recognizes as income gradually over the loan's life. In accounting, the unearned discount is listed at first as a liability on the lender's balance sheet, but is slowly recognized as income.
References in periodicals archive ?
An automated business-rule capability with algorithm-based problem detection and exception-based reporting can monitor and highlight those exceptions likely to result in late pays, chargebacks or unearned discounts.
The quote-to-cash cycle and associated processes are ripe for profit loss in the form of late pays, charge-backs, write-offs, penalties and unearned discounts.
30, June 30, (In thousands) 2006 2006 2005 2005 2005 Total loans, net of unearned discount $1,931,810 $2,010,881 $2,074,413 $1,769,548 $1,724,243 Allowance for loan losses (25,297) (26,999) (27,475) (25,019) (25,535) Total assets 2,850,281 2,916,510 2,980,757 2,540,169 2,461,842 Average assets 2,836,432 2,929,712 2,873,828 2,472,939 2,413,517 Total deposits 1,998,055 2,077,076 2,048,352 1,721,609 1,589,180
05 billion in loans, net of unearned discount, for the three and six months ended June 30, 2006, respectively, compared to the same periods in 2005, partially offset by a decrease in investment securities for the comparable periods.
35 Balance Sheet Summary: Total Assets $ 634,676 $ 602,394 Total Earning Assets 575,739 550,230 Loans, Net of Unearned Discount 448,730 406,426 Allowance for Credit Losses 7,662 7,081 Total Deposits 435,476 414,856 Common Shareholders' Equity 88,302 82,344 Book Value Per Share $13.
72 December 31, 2005 2004 Balance Sheet Summary: Total Assets $621,483 $586,153 Total Earning Assets 561,139 533,695 Loans, Net of Unearned Discount 439,221 403,984 Allowance for Credit Losses 7,694 7,061 Total Deposits 426,231 400,451 Common Shareholders' Equity 87,709 81,913 Book Value Per Share 13.
54 September 30, 2005 2004 Balance Sheet Summary: Total Assets $622,567 $588,516 Total Earnings Assets 565,220 538,221 Loan and Lease Receivables, Net of Unearned Discount 428,813 402,934 Allowance for Credit Losses 7,371 6,932 Total Deposits 430,594 388,219 Common Shareholders' Equity 86,585 79,749 Book Value Per Share $13.
Suppliers benefit from improved cash flow, more predictable payments, and less profit leakage from unearned discounts.