Exhibit 12. 1
HATTERAS FINANCIAL CORP.
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
(in thousands, except ratios)
(unaudited)
Computation of ratio of earnings to combined fixed charges and preferred stock dividends:
| Six Months Ended June 30, 2009 | Year Ended December 31, 2008 | September 19, 2007 (Date of Inception) to December 31, 2007 | |||||||
Fixed charges (1) | $ | 49,297 | $ | 104,481 | $ | 5,332 | |||
Preferred stock dividends (2) | — | — | — | ||||||
Combined fixed charges and preferred stock dividends | $ | 49,297 | $ | 104,481 | $ | 5,332 | |||
Fixed charges | $ | 49,297 | $ | 104,481 | $ | 5,332 | |||
Net income | 82,305 | 79,129 | 1,248 | ||||||
| $ | 131,602 | $ | 183,610 | $ | 6,580 | ||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 2.67 | 1.76 | 1.23 | ||||||
| (1) | Fixed charges consist of interest expense on all indebtedness. |
| (2) | No preferred stock was outstanding during these periods. |