Exhibit 12.1
Enterprise Financial Services Corp
Statement Regarding Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividend Requirement (unaudited)
Three months ended | Years ended December 31, | |||||||||||||||||||||||
($ in thousands) | March 31, 2009 (3) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||
Earnings (1): | ||||||||||||||||||||||||
Income (loss) before income taxes | $ | (52,860 | ) | $ | 6,016 | $ | 26,594 | $ | 24,672 | $ | 17,720 | $ | 12,303 | |||||||||||
Add: Fixed charges from below | 11,101 | 51,366 | 61,466 | 43,141 | 23,541 | 12,169 | ||||||||||||||||||
Other adjustments (2) | - | - | - | (875 | ) | (113 | ) | - | ||||||||||||||||
Earnings including interest expense on deposits (a) | $ | (41,759 | ) | $ | 57,382 | $ | 88,060 | $ | 66,939 | $ | 41,149 | $ | 24,472 | |||||||||||
Less: interest expense on deposits | (7,836 | ) | (39,921 | ) | (52,864 | ) | (37,832 | ) | (20,475 | ) | (9,998 | ) | ||||||||||||
Earnings excluding interest expense on deposits (b) | $ | (49,595 | ) | $ | 17,462 | $ | 35,195 | $ | 29,107 | $ | 20,674 | $ | 14,474 | |||||||||||
Fixed charges (1): | ||||||||||||||||||||||||
Interest on deposits | $ | 7,836 | $ | 39,921 | $ | 52,864 | $ | 37,832 | $ | 20,475 | $ | 9,998 | ||||||||||||
Interest on borrowings | 2,640 | 11,338 | 8,601 | 5,309 | 3,067 | 2,170 | ||||||||||||||||||
TARP preferred stock dividends (pre-tax) | 625 | 108 | - | - | - | - | ||||||||||||||||||
Fixed charges including interest on deposits (c) | $ | 11,101 | $ | 51,366 | $ | 61,466 | $ | 43,141 | $ | 23,541 | $ | 12,169 | ||||||||||||
Less: interest expense on deposits | (7,836 | ) | (39,921 | ) | (52,864 | ) | (37,832 | ) | (20,475 | ) | (9,998 | ) | ||||||||||||
Fixed charges excluding interest expense on deposits (d) | $ | 3,265 | $ | 11,446 | $ | 8,601 | $ | 5,309 | $ | 3,067 | $ | 2,170 | ||||||||||||
Ratio of earnings to combined fixed charges and | ||||||||||||||||||||||||
preferred dividends: | ||||||||||||||||||||||||
Excluding interest on deposits (b)/(d) | - | 1.53x | 4.09x | 5.48x | 6.74x | 6.67x | ||||||||||||||||||
Including interest on deposits (a)/(c) | - | 1.12x | 1.43x | 1.55x | 1.75x | 2.01x | ||||||||||||||||||
Ratio of earnings to combined fixed charges | ||||||||||||||||||||||||
Excluding interest on deposits (b)/(d) | - | 1.53x | 4.09x | 5.48x | 6.74x | 6.67x | ||||||||||||||||||
Including interest on deposits (a)/(c) | - | 1.12x | 1.43x | 1.55x | 1.75x | 2.01x |
(1) | As defined in Item 503(d) of Regulation S-K. | |
(2) | For purposes of the "earnings" computation, other adjustments include subtracting minority interest in pre-tax income of subsidiaries that did not incur fixed charges. | |
(3) | Due to the Company's $50.6 million loss (including $45.4 million of goodwill impairment charges) for the three months ended March 31, 2009, the ratio coverage was less than 1:1. The Company would have had to generate additional earnings of $52.9 million to achieve a coverage ratio of 1:1. |