EX-12.1 3 a16-8437_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,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2014

 

2013

 

2012

 

2011

Ratio of earnings/(deficiency) to fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

Including dividends on preferred stock

 

5.3

 

4.9

 

3.5

 

4.3

 

2.7

 

2.1

Excluding dividends on preferred stock

 

5.3

 

5.0

 

3.6

 

5.6

 

3.9

 

2.7

 

 

 

 

 

 

 

For the Three
Months Ended
March 31,

 

For the Years Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2014

 

2013

 

2012

 

2011

Income/(loss) before taxes (1)

 

$

6,403

 

$

24,231

 

$

13,714

 

$

17,838

 

$

11,239

 

$

9,553

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on deposits

 

879

 

$

3,615

 

$

3,567

 

$

2,860

 

$

2,988

 

$

4,482

Interest expense on long-term debt and other borrowings

 

519

 

2,216

 

1,590

 

1,007

 

830

 

541

Estimated interest component of rent expense, net

 

75

 

299

 

213

 

36

 

91

 

547

Dividends and accretion on preferred stock (2)

 

-

 

27

 

-

 

1,106

 

1,709

 

1,547

Total fixed charges, including dividends and accretion on preferred stock

 

$

1,473

 

$

6,157

 

$

5,370

 

$

5,009

 

$

5,618

 

$

7,117

Total fixed charges, excluding dividends and accretion on preferred stock

 

$

1,473

 

$

6,130

 

$

5,370

 

$

3,903

 

$

3,909

 

$

5,570

 

(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.