| Three Months Ended | Nine Months Ended | |||||||||||||||
| ($ in thousands) | September 30, | September 30, | ||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income (loss) |
$ | (76,485 | ) | $ | (19,258 | ) | $ | (482,459 | ) | $ | 3,119 | |||||
Income tax expense (benefit) |
(2,888 | ) | (16,369 | ) | 34,800 | (1,580 | ) | |||||||||
Earnings (loss) before income taxes |
(79,373 | ) | (35,627 | ) | (447,659 | ) | 1,539 | |||||||||
Fixed charges: |
||||||||||||||||
Interest on debt, deposits and other
borrowings |
23,711 | 26,424 | 78,240 | 79,971 | ||||||||||||
Interest on subordinated debt payable
to preferred securities trust |
2,181 | 2,317 | 6,780 | 6,951 | ||||||||||||
One-third of all rentals |
448 | 451 | 1,366 | 1,387 | ||||||||||||
Total fixed charges |
26,340 | 29,192 | 86,386 | 88,309 | ||||||||||||
Earnings (loss) before income taxes and
fixed charges |
$ | (53,033 | ) | $ | (6,435 | ) | $ | (361,273 | ) | $ | 89,848 | |||||
Ratio of earnings to fixed charges(1) |
(2.01 | )x(2) | (0.22 | )x(2) | (4.18 | )x(2) | 1.02 | x | ||||||||
| (1) | For purposes of computing these ratios, “earnings” represent income before income taxes plus fixed charges. “Fixed charges” consist of interest expense and one-third (the portion deemed representative of the interest factor) of rental expense on operating leases. Fixed charges do not include interest expense related to unrecognized tax benefits, which we classify as income tax expense. | |
| (2) | The ratios calculated for the three and nine months ended September 30, 2009 and the three months ended September 30, 2008 are less than 1.00. In order to achieve a ratio of 1.00, earnings before income taxes and fixed charges would need to increase by $79 million for the three months ended September 30, 2009, $36 million for the three months ended September 30, 2008 and $448 million for the nine months ended September 30, 2009. |