Exhibit 12.1
Calculation of Consolidated Ratio of Earnings to Fixed Charges
The following table shows our consolidated ratio of earnings to fixed charges:
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| Six Months Ended June 30, |
| Year Ended December 31, | |||||||||||||||||
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| 2017 |
| 2016 |
| 2016 |
| 2015 |
| 2014 |
| 2013 |
| 2012 | |||||||
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| (Dollars in thousands) | |||||||||||||||||||
Earnings: |
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Income before income taxes |
| $ | 22,490 |
| $ | 21,504 |
| $ | 43,969 |
| $ | 26,601 |
| $ | 20,965 |
| $ | 17,746 |
| $ | 15,398 |
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Fixed Charges: |
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Interest on deposits |
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| 1,817 |
| $ | 1,507 |
| $ | 3,199 |
| $ | 2,403 |
| $ | 2,032 |
| $ | 2,369 |
| $ | 2,800 |
Interest on notes payable to subsidiary grantor trusts, repurchase agreements, and other borrowings |
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| 228 |
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| 11 |
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| 12 |
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| 19 |
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| 121 |
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| 231 |
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| 1,387 |
Rent expense interest factor (1) |
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| 527 |
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| 482 |
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| 982 |
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| 999 |
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| 897 |
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| 906 |
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| 912 |
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Total fixed charges: |
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Including interest on deposits |
| $ | 2,572 |
| $ | 2,000 |
| $ | 4,193 |
| $ | 3,421 |
| $ | 3,050 |
| $ | 3,506 |
| $ | 5,099 |
Excluding interest on deposits |
| $ | 755 |
| $ | 493 |
| $ | 994 |
| $ | 1,018 |
| $ | 1,018 |
| $ | 1,137 |
| $ | 2,299 |
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Ratio of earnings (loss) to fixed charges: |
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Excluding interest on deposits |
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| 30.79 |
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| 44.64 |
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| 45.22 |
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| 27.13 |
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| 21.59 |
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| 16.61 |
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| 7.70 |
Including interest on deposits |
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| 9.74 |
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| 11.75 |
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| 11.49 |
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| 8.78 |
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| 7.87 |
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| 6.06 |
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| 4.02 |
(1) | This amount is the portion expense (generally one-third) deemed representative of the interest factor. |
For purposes of computing the ratios, earnings consist of income before income taxes and fixed charges. Fixed charges consist of interest on notes payable to subsidiary grantor trust, repurchase agreements and borrowings, one-third of rental expense (which Heritage Commerce Corp believes is representative of the interest factor), and including/excluding interest on deposits.