EX-12.1 7 hb_s3ex121.htm STATEMENT RE COMPUTATION OF RATIOS hb_s3ex121.htm
EXHIBIT 12.1

 
RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
 
The consolidated ratios of fixed charges and preferred stock dividends to earnings for each of the five years indicated below and the nine months ended September 30, 2011 and 2010 are as follows:
 
   
Nine Months Ended September 30,
    
Year Ended December 31,
  
   
2011
    
2010
    
2010
    
2009
    
2008
    
2007(1)
    
2006(1)
  
Earnings:
                                          
Income before income taxes
   $ 12,319     $ 9,601     $ 13,397     $ 11,210     $ 10,834     $ 10,867     $ 10,322  
Plus interest expense
     12,633       16,274       20,875       27,894       32,885       42,260       37,135  
                                                         
Earnings including interest on deposits
     24,952       25,875       34,272       39,104       43,719       53,127       47,457  
Less interest on deposits
     6,510       8,238       10,711       14,792       19,536       28,442       25,734  
                                                         
Earnings excluding interest on deposits
   $ 18,442     $ 17,637     $ 23,561     $ 24,312     $ 24,183     $ 24,685     $ 21,723  
                                                         
Fixed charges and preferred stock dividend requirements (pre-tax):
                                                        
Including interest on deposits and capitalized interest
   $ 14,311     $ 17,612     $ 22,677     $ 29,614     $ 32,939     $ 42,260     $ 37,135  
Less interest on deposits
     6,510       8,238       10,711       14,792       19,536       28,442       25,734  
    $ 7,801     $ 9,374     $ 11,966     $ 14,822     $ 13,403     $ 13,818     $ 11,401  
Excluding interest on deposits
                                                        
                                                         
Ratio of earnings to fixed charges and preferred stock dividend requirements (pre-tax):
                                                        
Including interest on deposits
     1.74       1.47       1.51       1.32       1.33       1.26       1.28  
Excluding interest on deposits
     2.36       1.88       1.97       1.64       1.80       1.79       1.91  

1.
No shares of preferred stock were outstanding until December 19, 2008, when Horizon issued to the Treasury 25,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”). The issuance was made pursuant to the Treasury’s Capital Purchase Program under the Troubled Asset Relief Program. On November 10, 2010, Horizon redeemed 6,250 shares of Series A Preferred Stock. On August 25, 2011, Horizon redeemed the remaining 18,750 shares of Series A Preferred Stock and also issued to the Treasury 12,500 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series B.