Events Calendar

Credit Analyst Series Webinar: Debt Service Coverage Calculations in Underwriting
Wednesday, August 11, 2021, 03:00pm - 04:30pm

Good commercial underwriting is the foundation of solid lending decisions. Part of that is calculating a borrower’s ability to repay the loan, also known as debt service coverage. Do you know how to calculate it and which method to use? Find out more with this timely webinar.


  • Distinguish between traditional EBITDA and Uniform Credit Analysis (UCA), including key information derived from each
  • Confidently describe the debt service coverage ratio within credit presentations and during periodic review, including identification of primary debt service coverage and secondary sources of repayment
  • Identify capital expenditure trending in financial statements to better understand the subject entity’s capital expenditure requirements
  • Clearly document and identify debt service requirements for various loan types
  • Realize the need for transaction-level sensitivity (or stress testing) to understand debt service coverage in adverse conditions


Many community financial institutions rely on traditional EBITDA analysis in determining borrower repayment ability. But does EBITDA provide everything we need to know? What about considerations for capital expenditures and dividends provided to entity ownership? Are we missing key elements which drive the borrower’s ability to generate satisfactory cash to satisfy repayment requirements?

This presentation will review traditional EBITDA analysis, including adjustments which should be considered to EBITDA in determining borrower repayment ability. It will address the Uniform Credit Analysis, specifically net cash after operations and UCA cash flow coverage. Other debt service coverage considerations, such as the free cash flow method for determining repayment ability, including considerations for capital expenditures and how these expenditures impact the borrower’s repayment ability will be included.


This informative session will benefit everyone involved in the underwriting and approval of commercial loans, including executive management on the loan approval committee, commercial loan officers, credit analysts, loan underwriters for commercial loans, branch managers with commercial lending authority, loan review staff, and auditors.


  • Employee training log
  • Interactive quiz

SPEAKER:  Aaron Lewis, Young & Associates, Inc.

Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the banking industry, his expertise is now dedicated to the lending division of Young & Associates where he assists financial institutions with loan, ALLL, policy, and credit-process and compliance reviews. He also conducts seminars on credit risk and compliance.

Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of a community financial institution in southeast Michigan and managed all facets of the lending function, including originations, underwriting, ALLL analysis, servicing, and secondary market compliance. He holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.