EX-12.1 3 a20111231-ex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS 2011.12.31-EX12.1


Exhibit 12.1

Enterprise Financial Services Corp
Statement Regarding Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividend Requirement (unaudited)
 
Years ended December 31,
($ in thousands)
2011
 
2010
2009 (2)
2008
2007
2006
Earnings (1):
 
 
 
 
 
 
 
Income (loss) before income taxes
$
37,372

 
$
6,396

$
(49,321
)
$
11,738

$
24,044

$
21,107

Add: Fixed charges from below
33,866

 
35,242

51,396

60,454

69,242

47,308

Earnings including interest expense on deposits (a)
$
71,238

 
$
41,638

$
2,075

$
72,192

$
93,286

$
68,415

 
 
 
 
 
 
 
 
Less: interest expense on deposits
(21,658
)
 
(22,867
)
(30,203
)
(39,920
)
(52,864
)
(37,832
)
Earnings excluding interest expense on deposits (b)
$
49,580

 
$
18,771

$
(28,128
)
$
32,272

$
40,422

$
30,583

 
 
 
 
 
 
 
 
Fixed charges (1):
 
 
 
 
 
 
 
Interest on deposits
$
21,658

 
$
22,867

$
30,203

$
39,920

$
52,864

$
37,832

Interest on borrowings
8,497

 
9,544

18,642

20,418

16,378

9,476

TARP preferred stock dividends (pre-tax)
3,711

 
2,831

2,551

116

—

—

Fixed charges including interest on deposits (c)
$
33,866

 
$
35,242

$
51,396

$
60,454

$
69,242

$
47,308

 
 
 
 
 
 
 
 
Less: interest expense on deposits
(21,658
)
 
(22,867
)
(30,203
)
(39,920
)
(52,864
)
(37,832
)
Fixed charges excluding interest expense on deposits (d)
$
12,208

 
$
12,375

$
21,193

$
20,534

$
16,378

$
9,476

 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges
 
 
 
 
 
 
 
     Excluding interest on deposits (b/d) (3)
 4.06x

 
 1.52x

 -1.33x

 1.57x

 2.47x

 3.23x

     Including interest on deposits (a/c)
 2.10x

 
 1.18x

 0.04x

 1.19x

 1.35x

 1.45x

 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preferred dividends:
 
 
 
 
 
 
 
     Excluding interest on deposits (b/d) (3)
 5.40x

 
 1.67x

 -1.65x

 1.57x

 2.47x

 3.23x

     Including interest on deposits (a/c)
 2.24x

 
 1.20x

 -0.01x

 1.19x

 1.35x

 1.45x


(1) As defined in Item 503(d) of Regulation S-K.

(2) Due to the Company's $46.7 million loss (including $45.4 million of goodwill impairment charges) for the year ended December 31, 2009, the ratio coverage was less than 1:1. The Company would have had to generate additional earnings of $49.3 million to achieve a coverage ratio of 1:1.

(3) The ratio of earnings to fixed charges and preferred dividends, excluding interest on deposits, is being provided as an additional measure to provide comparability to the ratios disclosed by all other issuers of debt securities.