EXHIBIT 12.2
First BanCorp
Computation of Ratio of Earnings to Fixed Charges and Preference Dividends
Computation of Ratio of Earnings to Fixed Charges and Preference Dividends
For the years ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Including Interest on Deposits | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pre-tax (loss) income from continuing operations | $ | (421,167 | ) | $ | (270,653 | ) | $ | 78,205 | $ | 89,719 | $ | 112,076 | ||||||||
Plus: | ||||||||||||||||||||
Fixed Charges (excluding capitalized interest) | 376,149 | 481,431 | 616,102 | 739,537 | 790,247 | |||||||||||||||
Total Earnings | $ | (45,018 | ) | $ | 210,778 | $ | 694,307 | $ | 829,256 | $ | 902,323 | |||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expensed and capitalized | $ | 372,535 | $ | 477,397 | $ | 612,086 | $ | 735,583 | $ | 786,670 | ||||||||||
Amortized premiums, discounts, and capitalized expenses related to indebtedness | 44 | 90 | 144 | 221 | 180 | |||||||||||||||
An estimate of the interest component within rental expense | 3,570 | 3,944 | 3,872 | 3,733 | 3,397 | |||||||||||||||
Total Fixed Charges before preferred dividends | 376,149 | 481,431 | 616,102 | 739,537 | 790,247 | |||||||||||||||
Preferred dividends | 38,246 | 46,888 | 40,276 | 40,276 | 40,276 | |||||||||||||||
Ratio of pre tax income to net income | 1.000 | 1.000 | 1.000 | 1.317 | 1.324 | |||||||||||||||
Preferred dividend factor | 38,246 | 46,888 | 40,276 | 53,033 | 53,335 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 414,395 | $ | 528,319 | $ | 656,378 | $ | 792,570 | $ | 843,582 | ||||||||||
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends | (A | ) | (A | ) | 1.06 | 1.05 | 1.07 | |||||||||||||
Excluding Interest on Deposits | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pre-tax (loss) income from continuing operations | $ | (421,167 | ) | $ | (270,653 | ) | $ | 78,205 | $ | 89,719 | $ | 112,076 | ||||||||
Plus: | ||||||||||||||||||||
Fixed Charges (excluding capitalized interest) | 127,435 | 163,569 | 192,607 | 215,087 | 240,170 | |||||||||||||||
Total (Loss) Earnings | $ | (293,732 | ) | $ | (107,084 | ) | $ | 270,812 | $ | 304,806 | $ | 352,246 | ||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expensed and capitalized | $ | 123,821 | $ | 159,535 | $ | 188,591 | $ | 211,133 | $ | 236,593 | ||||||||||
Amortized premiums, discounts, and capitalized expenses related to indebtedness | 44 | 90 | 144 | 221 | 180 | |||||||||||||||
An estimate of the interest component within rental expense | 3,570 | 3,944 | 3,872 | 3,733 | 3,397 | |||||||||||||||
Total Fixed Charges before preferred dividends | 127,435 | 163,569 | 192,607 | 215,087 | 240,170 | |||||||||||||||
Preferred dividends | 38,246 | 46,888 | 40,276 | 40,276 | 40,276 | |||||||||||||||
Ratio of pre tax income to net income | 1.000 | 1.000 | 1.000 | 1.317 | 1.324 | |||||||||||||||
Preferred dividend factor | 38,246 | 46,888 | 40,276 | 53,033 | 53,335 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 165,681 | $ | 210,457 | $ | 232,883 | $ | 268,120 | $ | 293,505 | ||||||||||
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends | (A | ) | (A | ) | 1.16 | 1.14 | 1.20 |
(A) | For the years ended December 31, 2010 and 2009, the ratio coverage was less than 1:1. The Corporation would have to generate additional earnings of $459.4 million and $317.5 million to achieve a ratio of 1:1 for the years ended December 31, 2010 and 2009, respectively. |