EX-12.1 3 hmstexhibit121q22018ca.htm COMPUTATION OF RATIO TO FIXED EARNINGS Exhibit
Exhibit 12.1

Calculation of Ratios of Earnings to Fixed Charges
The following tables set forth our ratios or earnings to fixed charges, excluding interest on deposits and earnings to fixed charges, including interest on deposits for the periods indicated. The ratio of earnings to fixed charges was computed by dividing earnings by our fixed charges. For purposes of calculating these ratios, earnings consists of income before income taxes plus fixed charges and distributed income of equity investees less minority interest in pre-tax income of subsidiaries that have not incurred fixed charges. Fixed charges include interest expense, amortization expense and estimated interest component of rental expense.

 
Six Months Ended June 30,
 
Years Ended December 31,
(Dollars in thousands)
2018
 
2017
 
2017
 
2016
 
2015
Fixed Charges
 
 
 
 
 
 
 
 
 
Interest expense, excluding deposits
$
12,050

 
$
8,007

 
$
19,333

 
$
10,479

 
$
4,975

Amortization of premiums
1,360

 
1,908

 
4,065

 
4,671

 
3,461

Estimated interest on rental expense (1)
4,612

 
4,084

 
8,705

 
7,346

 
6,628

Preferred stock dividends
—

 
—

 
—

 
—

 
—

    Total Fixed Charges
$
18,022

 
$
13,999

 
$
32,103

 
$
22,496

 
$
15,064

Earnings
 
 
 
 
 
 
 
 
 
Income before income taxes
16,599

 
29,370

 
$
66,189

 
$
90,777

 
$
56,907

Add: distributed income of equity investees
—

 
463

 
1,042

 
2,753

 
2,512

Add: fixed charges
18,022

 
13,999

 
32,103

 
22,496

 
15,064

Less: minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
311

 
591

 
598

 
2,333

 
1,624

     Total earnings
$
34,310

 
$
43,241

 
$
98,736

 
$
113,693

 
$
72,859

Ratio of Earnings to fixed charges, excluding interest on deposits
1.90

 
3.09

 
3.08

 
5.05

 
4.84

(1) This amount is the portion of rent expense (generally one-third) deemed representative of the interest factor.



Exhibit 12.1

 
Six Months Ended June 30,
 
Years Ended December 31,
(Dollars in thousands)
2018
 
2017
 
2017
 
2016
 
2015
Fixed Charges
 
 
 
 
 
 
 
 
 
Interest expense, including deposits
$
29,400

 
$
19,497

 
$
43,245

 
$
29,488

 
$
16,776

Amortization of premiums
1,360

 
1,908

 
4,065

 
4,671

 
3,461

Estimated interest on rental expense (1)
4,612

 
4,084

 
8,705

 
7,346

 
6,628

Preferred stock dividends
—

 
—

 
—

 
—

 
—

    Total Fixed Charges
$
35,372

 
$
25,489

 
$
56,015

 
$
41,505

 
$
26,865

Earnings
 
 
 
 
 
 
 
 
 
Income before income taxes
$
16,599

 
$
29,370

 
$
66,189

 
$
90,777

 
$
56,907

Add: distributed income of equity investees
—

 
463

 
1,042

 
2,753

 
2,512

Add: fixed charges
35,372

 
25,489

 
56,015

 
41,505

 
26,865

Subtract: minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
311

 
591

 
598

 
2,333

 
1,624

     Total earnings
$
51,660

 
$
54,731

 
$
122,648

 
$
132,702

 
$
84,660

Ratio of Earnings to fixed charges, including interest on deposits
1.46

 
2.15

 
2.19

 
3.20

 
3.15

(1) This amount is the portion of rent expense (generally one-third) deemed representative of the interest factor.