EX-12.1 3 a15-15126_1ex12d1.htm EX-12.1

Exhibit 12.1

 

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 preferred stock.

 

 

 

For the Three
Months Ended
March 31,

 

For the Years Ended December 31,

 

 

 

2015

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

Ratio of earnings/(deficiency) to fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including dividends on preferred stock

 

5.4

 

35

 

4.3

 

2.7

 

2.1

 

(1.0

)

(0.2

)

1.2

 

Excluding dividends on preferred stock

 

5.5

 

3.6

 

5.6

 

3.9

 

2.7

 

(1.2

)

(0.2

)

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three
Months Ended
March 31,

 

For the Years Ended December 31,

 

 

 

2015

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

Income/(loss) before taxes (1)

 

  $

6,686

 

  $

13,714  

 

  $

17,838  

 

  $

11,239  

 

  $

9,553  

 

  $

(19,320)  

 

  $

(12,874)  

 

  $

2,143  

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on deposits

 

  $

889

 

  $

3,567  

 

  $

2,860  

 

  $

2.988  

 

  $

4,482  

 

  $

7,448  

 

  $

8,884  

 

  $

9,703  

 

Interest expense on long-term debt and other borrowings

 

541

 

1,590  

 

1,007  

 

830   

 

541  

 

599  

 

1,165  

 

2,861  

 

Estimated interest component of rent expense, net

 

42

 

213  

 

36  

 

91  

 

547  

 

558  

 

582  

 

602  

 

Dividends on preferred stock (2)

 

64

 

161  

 

1,106  

 

1,709  

 

1,547  

 

1,861  

 

1,070  

 

—  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges, including dividends on preferred stock

 

  $

1,536

 

  $

5,531  

 

  $

5,009  

 

  $

5,618  

 

  $

7,117  

 

  $

10,466  

 

  $

11,701  

 

  $

13,166  

 

Total fixed charges, excluding dividends on preferred stock

 

  $

1,472

 

  $

5,370  

 

  $

3,903  

 

  $

3,909  

 

  $

5,570  

 

  $

8,605  

 

  $

10,631  

 

  $

13,166  

 

 

(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.