First Niagara Financial (FNFG) 10-Q 2015 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 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 years ended December 31, 2011 and 2010. Our consolidated ratios for the periods indicated are as follows (amounts in millions):

	Nine months ended September 30,					Years ended December 31,
	2015		2014			2014			2013		2012		2011		2010
Earnings:
Income (loss) before taxes	$	234	$	(901	)	$	(824	)	$	423	$	239	$	262	$	212
Fixed charges	114		98			133			128		162		195		154
Earnings (loss), including interest on deposits	348		(803		)	(692		)	550		401		458		366
Less interest on deposits	49		39			53			53		67		83		71
Earnings (loss), excluding interest on deposits	$	299	$	(842	)	$	(745	)	$	497	$	335	$	374	$	295
Fixed charges:
Interest on deposits	$	49	$	39		$	53		$	53	$	67	$	83	$	71
Interest on borrowings	56		51			69			64		86		101		77
Estimated interest component of rent expense	9		8			11			11		9		11		6
Fixed charges, including interest on deposits	114		98			133			128		162		195		154
Less interest on deposits	49		39			53			53		67		83		71
Fixed charges, excluding interest on deposits	65		59			79			75		95		112		83
Preferred stock dividend requirements	36		36			48			49		45		—		—
Combined fixed charges and preferred stock dividend requirements	$	101	$	96		$	133		$	124	$	140	$	112	$	83
Ratio of earnings (loss) to fixed charges:
Excluding interest on deposits	4.63		(14.20		)	(9.39		)	6.67		3.51		3.34		3.57
Including interest on deposits	3.06		(8.17		)	(5.21		)	4.31		2.48		2.34		2.38
Ratio of earnings (loss) to combined fixed charges and preferred stock dividend requirements:
Excluding interest on deposits	2.60		(9.17		)	(6.21		)	3.63		2.06		3.34		3.57
Including interest on deposits	2.08		(6.23		)	(4.09		)	2.84		1.72		2.34		2.38

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