Flagstar Bancorp (FBC) 10-K 2011 FY Annual report

Exhibit 12

Statement of Computation of Ratios of Earnings to Fixed Charges and Preferred Dividends

	For the Year Ended December 31,
	2011			2010			2009			2008			2007
Loss from continuing operations, before income tax	$	(180,722	)	$	(372,709	)	$	(441,670	)	$	(423,367	)	$	(58,814	)
Fixed charges:
Interest on short-term borrowings		16,515			4,375			4,676			32,722			120,075
Interest on long-term debt		107,975			163,051			231,615			240,040			218,126
Preferred dividends		11,629			13,333			12,259			—			—
Combined fixed charges, excluding interest on deposits		136,119			180,759			248,550			272,762			338,201
Interest on deposits		95,546			154,692			241,507			282,710			357,430
Combined fixed charges, including interest on deposits	$	231,665		$	335,451		$	490,057		$	555,472		$	695,631
Ratio of earnings to combined fixed charges and preferred stock dividend requirements:
Excluding interest on deposits		(1	)		(1	)		(1	)		(1	)		(1	)
Including interest on deposits		(1	)		(1	)		(1	)		(1	)		(1	)

(1) Earnings were insufficient to meet fixed charges and preferred stock dividends by approximately $180.7 million, $372.7 million, $441.7 million, $423.4 million, and $58.8 million for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively.

We did not pay preferred stock dividends 2006 through 2008. Payments of $11.6 million, $13.3 million and $12.3 million were made on our Series C preferred stock during the years ended December 31, 2011, 2010 and 2009, respectively.

For the purpose of computing the consolidated ratio of earnings to fixed charges, “earnings” consist of income before income taxes and extraordinary items plus fixed charges. “Fixed charges” consist of interest on short-term and long-term debt and where indicated, interest on deposits. For the years ended December 31, 2011, 2010 and 2009, fixed charges also includes preferred stock dividends. We did not pay any preferred stock dividends prior to 2009. The ratios are based solely on historical financial information, and no pro forma adjustments have been made thereto.