Heritage Financial 10-Q 2013 Q3 Quarterly report

EXHIBIT 12.1

	Nine months Ended September 30,		Years Ended December 31,
Ratio of Earnings to Fixed Charges:	2013		2012		2011		2010		2009			2008
	(dollars in thousands)
Earnings:
Income (loss)  before income taxes	$	11,143	$	9,342	$	4,925	$	1,099	$	(3,376	)	$	(1,490	)
Fixed charges		5,832		7,942		10,531		8,314		8,833			12,543
Total Earnings	$	16,975	$	17,284	$	15,456	$	9,413	$	5,457		$	11,053
Fixed charges:
Interest expense on deposits	$	3,077	$	4,874	$	7,550	$	5,759	$	6,471		$	9,043
Interest expense on borrowings		2,446		2,739		2,800		2,515		2,322			3,451
Estimated interest portion of rent expense(1)		309		329		181		40		40			49
Total fixed charges	$	5,832	$	7,942	$	10,531	$	8,314	$	8,833		$	12,543
Ratio of earnings to fixed charges:
Excluding interest on deposits		6.16		5.63		5.18		3.68		2.31			3.16
Including interest on deposits		2.91		2.18		1.47		1.13		0.62			0.88

(1) Estimated to be 33% of rent expense.