Arlington Asset Investment (AAIC) 10-Q 2016 Q3 Quarterly report

Exhibit 12.01

Computation of Ratio of Earnings to Fixed Charges

(dollars in thousands)

	Nine Months
	Ended
	September 30,		Year Ended December 31,
	2016		2015			2014		2013		2012		2011
Pre-tax income (loss) from continuing operations    adjusted to exclude income or loss from equity    investees	$	4,583	$	(32,403	)	$	55,189	$	14,253	$	30,788	$	16,753
Distributed income of equity investees		809		1,628			413		90		384		266
Fixed charges:
Interest expense and amortization of debt discount    and premium on all indebtedness		20,786		18,889			11,391		8,529		4,965		2,508
Rentals		66		92			83		81		88		58
Total fixed charges	$	20,852	$	18,981		$	11,474	$	8,610	$	5,053	$	2,566
Pre-tax income (loss) from continuing operations    adjusted to exclude income or loss from equity    investees plus fixed charges and distributed income    of equity investees	$	26,244	$	(11,794	)	$	67,076	$	22,953	$	36,225	$	19,585
Ratio of earnings to fixed charges		1.3	(A)				5.8		2.7		7.2		7.6

(A) Due to the Company’s loss for the year ended December 31, 2015, the ratio coverage in that period was less than 1:1. The Company would have had to generate additional earnings of $30,775 for the year ended December 31, 2015 to achieve coverage of 1:1 in those periods.