EX-12 7 a2207583zex-12.htm EX-12

Exhibit 12

 

First Midwest Bancorp, Inc.
Ratio of Earnings to Fixed Charges (1)
(Dollar Amounts in Thousands)

 

 

 

Years ended December 31,

 

 

 

2011

 

2010

 

2009

 

2008

 

2007

 

Ratio 1 - Including Interest on Deposits

 

 

 

 

 

 

 

 

 

 

 

Earnings available for fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

36,563

 

$

(9,684

)

$

(25,750

)

$

49,336

 

$

80,159

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

4,508

 

(28,544

)

(50,176

)

(13,291

)

13,853

 

Fixed charges

 

40,936

 

50,589

 

91,308

 

163,680

 

237,930

 

Total earnings available for fixed charges

 

$

82,007

 

$

12,361

 

$

15,382

 

$

199,725

 

$

331,942

 

Fixed charges (2)

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

$

27,256

 

$

37,127

 

$

64,177

 

$

110,622

 

$

166,267

 

Interest on borrowed funds

 

2,743

 

3,267

 

12,569

 

37,192

 

55,540

 

Interest on subordinated debt

 

9,892

 

9,124

 

13,473

 

14,796

 

15,025

 

Total interest expense

 

39,891

 

49,518

 

90,219

 

162,610

 

236,832

 

Portion of rental expense representative of interest factor

 

1,045

 

1,071

 

1,089

 

1,070

 

1,098

 

Total fixed charges

 

40,936

 

50,589

 

91,308

 

163,680

 

237,930

 

Preference security dividend (3)

 

12,105

 

40,656

 

30,267

 

520

 

—

 

Total fixed charges and preferred stock dividends

 

$

53,041

 

$

91,245

 

$

121,575

 

$

164,200

 

$

237,930

 

Ratio of earnings to fixed charges

 

2.00

x

0.24

x(4)

0.17

x(5)

1.22

x

1.40

x

Ratio of earnings to combined fixed charges and preferred stock dividends

 

1.55

x

0.14

x

0.13

x

1.22

x

1.40

x

 

 

 

 

 

 

 

 

 

 

 

 

Ratio 2 - Excluding Interest on Deposits

 

 

 

 

 

 

 

 

 

 

 

Earnings available for fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from continuing operations

 

$

36,563

 

$

(9,684

)

$

(25,750

)

$

49,336

 

$

80,159

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

4,508

 

(28,544

)

(50,176

)

(13,291

)

13,853

 

Fixed charges

 

13,680

 

13,462

 

27,131

 

53,058

 

71,663

 

Total earnings available for fixed charges

 

$

54,751

 

$

(24,766

)

$

(48,795

)

$

89,103

 

$

165,675

 

Fixed charges (2):

 

 

 

 

 

 

 

 

 

 

 

Interest on borrowed funds

 

$

2,743

 

$

3,267

 

$

12,569

 

$

37,192

 

$

55,540

 

Interest on subordinated debt

 

9,892

 

9,124

 

13,473

 

14,796

 

15,025

 

Portion of rental expense representative of interest factor

 

1,045

 

1,071

 

1,089

 

1,070

 

1,098

 

Total fixed charges

 

13,680

 

13,462

 

27,131

 

53,058

 

71,663

 

Preference security dividend (3)

 

12,105

 

40,656

 

30,267

 

520

 

—

 

Total fixed charges and preferred stock dividends

 

$

25,785

 

$

54,118

 

$

57,398

 

$

53,578

 

$

71,663

 

Ratio of earnings to fixed charges

 

4.00

x

(1.84

)x(4)

(1.80

)x(5)

1.68

x

2.31

x

Ratio of earnings to combined fixed charges and preferred stock dividends

 

2.12

x

(0.46

)x

(0.85

)x

1.68

x

2.31

x

 

(1)

 

The ratio of earnings to fixed charges represents the number of times “fixed charges” are covered by “earnings.”

(2)

 

“Fixed charges” consist of interest on outstanding debt plus one-third (the proportion deemed representative of the interest factor) of operating lease expense.

(3)

 

This is computed as the amount of the preferred dividend divided by (1 minus the effective income tax rate applicable to continuing operations).

(4)

 

Earnings for the reporting period were inadequate to cover fixed charges by $38.2 million.

(5)

 

Earnings for the reporting period were inadequate to cover fixed charges by $75.9 million.