EX-12 3 a14-11045_1ex12.htm EX-12

Exhibit 12

Heritage Oaks Bancorp

Computation of Ratio of Earnings to Fixed Charges

 

The ratio of earnings to fixed charges inclusive and exclusive of preferred stock dividends, as well as any applicable deficiency of earnings are determined using the following applicable factors:

 

Earnings available for fixed charges are calculated first by determining the sum of: (a) income (loss) from continuing operations before income taxes, and (b) fixed charges as defined below.

 

Fixed charges are calculated as the sum of (a) interest costs on deposit relationships, (b) interest costs on borrowings including amortization of discount or premium relating to any indebtedness, (c) that portion of rental expense that is representative of the interest factor and (d) the amount of pre-tax earnings required to cover preferred security.

 

Preferred stock dividends used in the ratio of earnings to combined fixed charges and preferred stock dividends consist of the dividends paid on our Series A Preferred Stock.

 

 

 

For the Three
Months Ended
March 31,

 

For the Years Ended December 31,

 

 

 

 

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

2007

 

Ratio of earnings/(deficiency) to fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including dividends on preferred stock

 

(1.4

)

4.3

 

2.7

 

2.1

 

(1.0

)

(0.2

)

1.2

 

1.7

 

Excluding dividends on preferred stock

 

(1.4

)

5.6

 

3.9

 

2.7

 

(1.2

)

(0.2

)

1.2

 

1.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three
Months Ended
March 31,

 

For the Years Ended December 31,

 

 

 

 

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

2007

 

Income/(loss) before taxes (1)

 

$

(2,837

)

$

17,838

 

$

11,239

 

$

9,553

 

$

(19,320

)

$

(12,874

)

$

2,143

 

$

11,204

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on deposits

 

$

815

 

$

2,860

 

$

2,988

 

$

4,482

 

$

7,448

 

$

8,884

 

$

9,703

 

$

11,871

 

Interest expense on long-term debt and other borrowings

 

336

 

1,007

 

830

 

541

 

599

 

1,165

 

2,861

 

2,880

 

Estimated interest component of rent expense, net

 

25

 

36

 

91

 

547

 

558

 

582

 

602

 

393

 

Dividends on preferred stock (2)

 

—

 

1,106

 

1,709

 

1,547

 

1,861

 

1,070

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges, including dividends on preferred stock

 

$

1,176

 

$

5,009

 

$

5,618

 

$

7,117

 

$

10,466

 

$

11,701

 

$

13,166

 

$

15,144

 

Total fixed charges, excluding divdends on preferred stock

 

$

1,176

 

$

3,903

 

$

3,909

 

$

5,570

 

$

8,605

 

$

10,631

 

$

13,166

 

$

15,144

 

 

(1)                   Income/(loss) before taxes is derived from our consolidated statements of operations, included in our financial statements.

 

(2)                   The preferred stock dividend amounts represent pre-tax earnings required to cover the dividends on preferred stock based on an assumed 36% effective tax rate.

 

Note: Due to the pretax losses in 2010 and 2009 attributable to elevated levels of loan loss provisioning, earnings were inadequate to cover total fixed charges and preferred stock dividends for those two years. Due to the impact of one-time charges from the acquisition of Mission Community Bancorp in the first quarter of 2014, earnings were inadequate to cover the fixed charges.