EX-12.1 4 g19004exv12w1.htm EX-12.1 EX-12.1
Exhibit 12.1
POPULAR, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
                                                           
      Quarter Ended   Year Ended December 31,  
      March 31,     March 31,                                
      2009 (1)   2008 (1)   2008 (1)   2007 (1)   2006 (1)   2005 (1)   2004 (1)  
(Loss) income from continuing operations before income taxes and cumulative effect of accounting changes
     $ (73,002 )   $ 111,784     $ (232,959 )   $ 266,909     $ 551,893     $ 665,045     $ 536,128  
 
                                                          
Fixed charges:
                                                          
Interest expense
       216,706       276,082       994,919       1,246,577       1,200,508       859,075       543,267  
Estimated interest component of net rental payments
       7,432       10,582       34,975       31,296       25,670       23,755       21,593  
 
                                                          
Total fixed charges including interest on deposits
       224,138       286,664       1,029,894       1,277,873       1,226,178       882,830       564,860  
 
                                                          
Less: Interest on deposits
       148,039       194,940       700,122       765,794       580,094       430,813       330,351  
Total fixed charges excluding interest on deposits
       76,099       91,724       329,772       512,079       646,084       452,017       234,509  
 
                                                          
Income before income taxes and fixed charges(including interest on deposits)
     $ 151,136     $ 398,448     $ 796,935     $ 1,544,782     $ 1,778,071     $ 1,547,875     $ 1,100,988  
 
                                                          
Income before income taxes and fixed charges(excluding interest on deposits)
     $ 3,097     $ 203,508     $ 96,813     $ 778,988     $ 1,197,977     $ 1,117,062     $ 770,637  
 
                                                          
Preferred stock dividends
       16,942       2,978       34,814       11,913       11,913       11,913       11,913  
 
                                                          
Ratio of earnings to fixed charges
                                                          
 
                                                          
Including Interest on Deposits
       (A )     1.4       (A )     1.2       1.5       1.8       1.9  
 
                                                          
Excluding Interest on Deposits
       (A )     2.2       (A )     1.5       1.9       2.5       3.3  
 
                                                          
Ratio of earnings to fixed charges & Preferred Stock Dividends
                                                          
 
                                                          
Including Interest on Deposits
       (A )     1.4       (A )     1.2       1.4       1.7       1.9  
 
                                                          
Excluding Interest on Deposits
       (A )     2.1       (A )     1.5       1.8       2.4       3.1  
 
(1)   On November 3, 2008, the Corporation sold residual interests and servicing related assets of Popular Financial Holding (“PFH”) and Popular, FS to Goldman Sachs Mortgage Company, Goldman, Sachs & Co. and Litton Loan Servicing, LP. In addition, on September 18, 2008, the Corporation announced the consummation of the sale of manufactured housing loans of PFH to 21st Mortgage Corp. and Vanderbilt Mortgage and Finance, Inc. The above transactions and past sales and restructuring plans executed at PFH in the past two years have resulted in the discontinuance of the Corporation’s PFH operations anf PFH’s results are reflected as such in the Corporation’s Consolidated Statement of Operations. The computation of earnings to fixed charges and preferred stock dividends excludes discontinued operations. Prior periods have been retrospectively adjusted on a comparable basis.
 
(A)   During 2008 and the first quarter of 2009, earnings were not sufficient to cover fixed charges or preferred dividends and the ratios were less than 1:1. The Corporation would have had to generate additional earnings of approximately $235 million and $100 million to achieve ratios of 1:1 in 2008 and the first quarter of 2009, respectively.