First Niagara Financial (FNFG) 10-Q 2012 Q3 Quarterly report

Exhibit 12

Ratios of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends

Our ratios of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends are calculated in accordance with SEC requirements and computed by dividing earnings by fixed charges and earnings by preferred stock dividend requirements. For purposes of computing these ratios, earnings consist of net income before extraordinary items plus applicable income taxes and fixed charges. Fixed charges, excluding interest on deposits, consist of interest expense on borrowings and one-third of our rental expense, which we deem to represent interest. Preferred share dividend requirements represent the amount of pre-tax income required to pay the dividends on preferred shares. We issued Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $0.01 per share on November 21, 2008, which were then redeemed on May 27, 2009. In addition, we issued Noncumulative Perpetual Preferred Stock, Series B, par value $0.01 per share, on December 14, 2011, but did not declare any dividends in 2011. Therefore, the ratio of earnings to combined fixed charges and preferred share dividends is identical to the ratio of earnings to fixed charges for the nine months ended September 30, 2011 and the years ended December 31, 2011, 2010 and 2007. Our consolidated ratios for the periods indicated are as follows (amounts in thousands):

	Nine months ended September 30,				Years ended December 31,
	2012		2011		2011		2010		2009		2008		2007
Earnings:
Income before taxes	$	156,039	$	171,489	$	262,116	$	212,410	$	120,053	$	133,402	$	125,023
Fixed charges	128,430		143,567		195,400		153,739		128,725		174,661		200,727
Earnings, including interest on deposits	284,469		315,056		457,516		366,149		248,778		308,063		325,750
Less interest on deposits	49,747		61,716		83,237		71,150		73,551		118,683		159,371
Earnings, excluding interest on deposits	$	234,722	$	253,340	$	374,279	$	294,999	$	175,227	$	189,380	$	166,379
Fixed charges:
Interest on deposits	$	49,747	$	61,716	$	83,237	$	71,150	$	73,551	$	118,683	$	159,371
Interest on borrowings	71,753		72,951		100,823		76,684		52,807		53,878		39,223
Estimated interest component of rent expense	6,930		8,900		11,340		5,905		2,367		2,100		2,133
Fixed charges, including interest on deposits	128,430		143,567		195,400		153,739		128,725		174,661		200,727
Less interest on deposits	49,747		61,716		83,237		71,150		73,551		118,683		159,371
Fixed charges, excluding interest on deposits	78,683		81,851		112,163		82,589		55,174		55,978		41,356
Preferred stock dividend requirements	32,786		—		—		—		20,035		1,969		—
Combined fixed charges and preferred stock dividend requirements	$	111,469	$	81,851	$	112,163	$	82,589	$	75,209	$	57,947	$	41,356
Ratio of earnings to fixed charges:
Excluding interest on deposits	2.98		3.10		3.34		3.57		3.18		3.38		4.02
Including interest on deposits	2.21		2.19		2.34		2.38		1.93		1.76		1.62
Ratio of earnings to combined fixed charges and preferred stock dividend requirements:
Excluding interest on deposits	1.81		3.10		3.34		3.57		2.06		3.23		4.02
Including interest on deposits	1.56		2.19		2.34		2.38		1.54		1.73		1.62