Exhibit 12.1
HOWARD BANCORP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Three months ended March 31, | Year ended December 31, | |||||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| Pretax income | $ | 2,510 | $ | 8,239 | $ | 2,115 | $ | 17,265 | $ | 2,945 | $ | 2,759 | ||||||||||||
| Preferred stock dividends | $ | - | $ | 166 | $ | 126 | $ | 126 | $ | 165 | $ | 616 | ||||||||||||
| Pretax income needed for preferred stock dividends | $ | - | $ | 258 | $ | 233 | $ | 209 | $ | 248 | $ | 1,049 | ||||||||||||
| Fixed charges | ||||||||||||||||||||||||
| Interest expense on deposits | $ | 884 | $ | 3,470 | $ | 2,611 | $ | 2,079 | $ | 1,656 | $ | 1,778 | ||||||||||||
| Interest expense on debt | $ | 233 | $ | 1,092 | $ | 461 | $ | 323 | $ | 245 | $ | 227 | ||||||||||||
| Total interest expense | $ | 1,117 | $ | 4,562 | $ | 3,072 | $ | 2,402 | $ | 1,901 | $ | 2,005 | ||||||||||||
| Including interest expense on deposits | ||||||||||||||||||||||||
| Earnings | $ | 3,627 | $ | 12,801 | $ | 5,187 | $ | 19,667 | $ | 4,846 | $ | 4,764 | ||||||||||||
| Fixed Charges | $ | 1,117 | $ | 4,562 | $ | 3,072 | $ | 2,402 | $ | 1,901 | $ | 2,005 | ||||||||||||
| Ratio of earnings to fixed charges | 3.25 | 2.81 | 1.69 | 8.19 | 2.55 | 2.38 | ||||||||||||||||||
| Ratio of earnings to fixed charges and preferred stock dividends | 3.25 | 2.66 | 1.57 | 7.53 | 2.26 | 1.56 | ||||||||||||||||||
| Excluding interest expense on deposits | ||||||||||||||||||||||||
| Earnings | $ | 2,743 | $ | 9,331 | $ | 2,576 | $ | 17,588 | $ | 3,190 | $ | 2,986 | ||||||||||||
| Fixed Charges | $ | 233 | $ | 1,092 | $ | 461 | $ | 323 | $ | 245 | $ | 227 | ||||||||||||
| Ratio of earnings to fixed charges | 11.77 | 8.54 | 5.59 | 54.45 | 13.02 | 13.15 | ||||||||||||||||||
| Ratio of earnings to fixed charges and preferred stock dividends | 11.77 | 6.91 | 3.71 | 33.06 | 6.47 | 2.34 | ||||||||||||||||||
For purposes of determining the ratios of earnings to fixed charges and earnings to fixed charges and preferred stock dividends, earnings are defined as the sum of pre-tax income from continuing operations and fixed charges. Fixed charges means the sum of interest expensed and capitalized.
Preferred stock dividends used in the ratio of earnings to fixed charges and preferred stock dividends consist of the amount of pre-tax earnings required to cover dividends paid on our Series AA Preferred Stock. Series AA Preferred Stock was redeemed as of May 6, 2016 and, as such, there were no dividends beyond such date.
