Heritage Financial 10-Q 2014 Q3 Quarterly report

EXHIBIT 12.1

	Nine months
	Ended
	September 30,		Years Ended December 31,
Ratio of Earnings to Fixed Charges:	2014		2013		2012		2011		2010		2009
	(dollars in thousands)
Earnings:
Income (loss)  before income taxes	$	7,248	$	15,994	$	9,342	$	4,925	$	1,099	$	(3,376)
Fixed charges		7,652		7,800		7,942		10,531		8,314		8,833
Total Earnings	$	14,900	$	23,794	$	17,284	$	15,456	$	9,413	$	5,457
Fixed charges:
Interest expense on deposits	$	3,508	$	4,077	$	4,874	$	7,550	$	5,759	$	6,471
Interest expense on borrowings		2,560		3,308		2,739		2,800		2,515		2,322
Estimated interest portion of rent expense(1)		396		415		329		181		40		40
Total fixed charges	$	7,652	$	7,800	$	7,942	$	10,531	$	8,314	$	8,833
Ratio of earnings to fixed charges:
Excluding interest on deposits		3.60		6.39		5.63		5.18		3.68		2.31
Including interest on deposits		1.95		3.05		2.18		1.47		1.13		0.62

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