EX-12.1 3 hb_s3ex121.htm STATEMENT REGARDING COMPUTATION OF RATIOS
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, 2014 and 2013 are as follows:
   
Nine Months
 Ended September 30,
    
Year Ended December 31,(1)
  
   
2014
    
2013
    
2013
    
2012
    
2011
    
2010
    
2009
  
Earnings:
  
                         
Income before income taxes
  
$
17,644
    
$
21,721
    
$
26,924
    
$
27,989
    
$
16,983
    
$
13,397
    
$
11,210
  
Plus interest expense
    
9,980
      
10,193
      
13,503
      
14,322
      
16,501
      
20,875
      
27,894
  
 
                                                        
Earnings including interest on deposits
    
27,624
      
31,914
      
40,427
      
42,311
      
33,484
      
34,272
      
39,104
  
Less interest on deposits
    
3,984
      
4,320
      
5,672
      
6,206
      
8,346
      
10,711
      
14,792
  
 
                                                        
Earnings excluding interest on deposits
  
$
23,640
    
$
27,594
    
$
34,755
    
$
36,105
    
$
25,138
    
$
23,561
    
$
24,312
  
                                                         
Fixed charges and preferred stock dividend requirements (pre-tax):
                                                        
Including interest on deposits and capitalized interest
  
$
9,980
    
$
10,193
    
$
13,503
    
$
14,322
    
$
16,501
    
$
22,677
    
$
29,614
  
Preferred stock dividend requirement (pre-tax):
  
$
157
    
$
474
    
$
569
    
$
740
    
$
2,038
    
$
2,163
    
$
2,157
  
Less interest on deposits
    
3,984
      
4,320
      
5,672
      
6,206
      
8,346
      
10,711
      
14,792
  
Excluding interest on deposits
  
$
6,153
    
$
6,347
    
$
8,400
    
$
8,856
    
$
10,193
    
$
14,129
    
$
16,979
  
 
                                                        
Ratio of earnings to fixed charges:
                                                        
Including interest on deposits
    
2.77
      
3.13
      
2.99
      
2.95
      
2.03
      
1.51
      
1.32
  
Excluding interest on deposits
    
3.94
      
4.70
      
4.44
      
4.45
      
3.08
      
1.97
      
1.64
  
                                                         
Ratio of earnings to fixed charges  and preferred stock dividend requirements (pre-tax):
                                                        
Including interest on deposits
    
2.73
      
2.99
      
2.87
      
2.81
      
1.81
      
1.38
      
1.23
  
Excluding interest on deposits
    
3.84
      
4.35
      
4.14
      
4.08
      
2.47
      
1.67
      
1.43
  

 
(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.