EX-12.1 2 exhibit12_1.htm EXHIBIT 12.1 Exhibit12_1


Exhibit 12.1
Ratios of Earnings to Fixed Charges and Earnings to
Combined Fixed Charges and Preferred Stock Dividends
Our historical ratios of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends for the periods indicated are set forth in the table below. As of December 31, 2014, we had 23,938.35 shares of our Senior Non-Cumulative Perpetual Preferred Stock, Series A, or Series A preferred stock, outstanding, which were issued in connection with the acquisition of BOH Holdings, Inc. on April 15, 2014. As a result of the time at which such issuance occurred, our Series A preferred stock did not affect any of the four years ended December 31, 2013. The dividend on our Series A preferred stock is approximately $60,000 per quarter, and payments began in the quarter ended June 30, 2014.
The ratio of earnings to fixed charges is computed by dividing (1) income from continuing operations before income taxes and fixed charges by (2) total fixed charges. The ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing (1) income from continuing operations before income taxes and fixed charges by (2) total fixed charges and preferred stock dividends.
For purposes of computing these ratios (i) earnings consist of income before income taxes plus fixed charges, (ii) fixed charges, excluding interest on deposits, include interest expense (other than on deposits) and the estimated portion of rental expense attributable to interest, net of income from subleases, (iii) fixed charges, including interest on deposits, include all interest expense and the estimated portion of rental expense attributable to interest, net of income from subleases, and (iv) pretax earnings required for preferred stock dividends were computed using tax rates for the applicable year.
 
Year ended December 31,
 
2014
2013
2012
2011
2010
Earnings:
 
 
 
 
 
Income before taxes
$
43,898

$
24,461

$
17,377

$
13,700

$
13,116

Fixed charges
16,551

12,567

13,502

13,468

13,762

Earnings, including interest on deposits
60,449

37,028

30,879

27,168

26,878

Less: interest on deposits
9,537

6,974

8,351

9,912

10,777

Earnings, excluding interest on deposits
$
50,912

$
30,054

$
22,528

$
17,256

$
16,101

 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
Interest on deposits
$
9,537

$
6,974

$
8,351

$
9,912

$
10,777

Interest on borrowings, including rent
7,014

5,593

5,151

3,556

2,985

Fixed charges, including interest on deposits
16,551

12,567

13,502

13,468

13,762

Less: interest on deposits
9,537

6,974

8,351

9,912

10,777

Fixed charges, excluding interest on deposits
$
7,014

$
5,593

$
5,151

$
3,556

$
2,985

Preferred stock dividend requirements
169

−

−

−

−

Combined fixed charges and preferred stock dividend requirements, including deposits
$
16,720

$
12,567

$
13,502

$
13,468

$
13,762

Combined fixed charges and preferred stock dividend requirements, excluding deposits
7,183

5,593

5,151

3,556

2,985

 
 
 
 
 
 
Ratio of Earnings to Fixed Charges:
 
 
 
 
 
Excluding interest on deposits
7.26x

5.37x

4.37x

4.85x

5.39x

Including interest on deposits
3.65

2.95

2.29

2.02

1.95

 
 
 
 
 
 
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements:
 
 
 
 
 
Excluding interest on deposits
7.09x

5.37x

4.37x

4.85x

5.39x

Including interest on deposits
3.62

2.95

2.29

2.02

1.95