EX-12 2 c07598exv12.htm EXHIBIT 12 Exhibit 12
EXHIBIT 12
FINANCIAL INSTITUTIONS, INC.
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
                                                 
    Nine months ended        
    September 30,     Years Ended December 31,  
    2010     2009     2008     2007     2006     2005  
EARNINGS:
                                                
 
                                                
Pre-tax income (loss) from continuing operations
   $ 23,650     $ 20,581     $ (47,459 )   $ 21,209     $ 23,607     $ 2,852  
Fixed charges
     17,677       27,633       36,518       49,153       45,715       37,379  
 
                                    
Earnings, including interest on deposits (a)
   $ 41,327     $ 48,214     $ (10,941 )   $ 70,362     $ 69,322     $ 40,231  
 
                                    
LESS: Interest on deposits
     11,253       19,090       29,349       42,714       37,445       30,255  
 
                                    
Earnings, excluding interest on deposits (b)
   $ 30,074     $ 29,124     $ (40,290 )   $ 27,648     $ 31,877     $ 9,976  
 
                                    
 
                                                
FIXED CHARGES:
                                                
Interest on deposits
   $ 11,253     $ 19,090     $ 29,349     $ 42,714     $ 37,445     $ 30,255  
Interest on borrowings
     2,238       3,127       4,268       4,425       6,159       6,140  
Amortized premiums, discounts and capitalized expenses related to indebtedness (1)
     —       —       —       —       —       —  
Estimated interest component of rent expense (2)
     107       147       111       97       90       65  
Preferred security dividends (3)
     4,079       5,269       2,790       1,917       2,021       919  
 
                                    
Fixed charges, including interest on deposits (c)
   $ 17,677     $ 27,633     $ 36,518     $ 49,153     $ 45,715     $ 37,379  
 
                                    
LESS: Interest on deposits
     11,253       19,090       29,349       42,714       37,445       30,255  
 
                                    
Fixed charges, excluding interest on deposits (d)
   $ 6,424     $ 8,543     $ 7,169     $ 6,439     $ 8,270     $ 7,124  
 
                                    
 
                                                
Ratio of earnings to combined fixed charges and preferred security dividends:
                                                
Including interest on deposits (a / c)
     2.34       1.74       *       1.43       1.52       1.08  
Excluding interest on deposits (b / d)
     4.68       3.41       *       4.29       3.85       1.40  
 
     
(1)  
Any discount, premium or capitalized expenses on debt are included in interest on borrowings.
 
(2)  
Estimated to be approximately 10% of rent expense.
 
(3)  
Preferred security dividends are shown on a tax-equivalent basis, computed using the effective income tax rate from continuing operations for each period shown.
 
*  
Ratios for this period are less than 1.00. For the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $47.5 million.