Exhibit 12.1
Ratios of Earnings to Fixed Charges and Earnings to
Combined Fixed Charges and Preferred Stock Dividends
Our historical ratios of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends for the periods indicated are set forth in the table below. As of December 31, 2015 and 2014, we had 23,938.35 shares of our Senior Non-Cumulative Perpetual Preferred Stock, Series A, or Series A preferred stock, outstanding, which were issued in connection with the acquisition of BOH Holdings, Inc. on April 15, 2014. As a result of the time at which such issuance occurred, our Series A preferred stock did not affect any of the three years ended December 31, 2013. The dividend on our Series A preferred stock was approximately $60,000 per quarter, and payments began in the quarter ended June 30, 2014. In January 2016, the Company redeemed all 23,938.35 outstanding shares of its Senior Non-Cumulative Perpetual Small Business Lending Fund Series A Preferred Stock and related accrued dividends.
The ratio of earnings to fixed charges is computed by dividing (1) income from continuing operations before income taxes and fixed charges by (2) total fixed charges. The ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing (1) income from continuing operations before income taxes and fixed charges by (2) total fixed charges and preferred stock dividends.
For purposes of computing these ratios (i) earnings consist of income before income taxes plus fixed charges, (ii) fixed charges, excluding interest on deposits, include interest expense (other than on deposits) and the estimated portion of rental expense attributable to interest, net of income from subleases, (iii) fixed charges, including interest on deposits, include all interest expense and the estimated portion of rental expense attributable to interest, net of income from subleases, and (iv) pretax earnings required for preferred stock dividends were computed using tax rates for the applicable year.
|
| | | | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2015 | 2014 | 2013 | 2012 | 2011 |
Earnings: | | | | | |
| Income before taxes | $ | 57,797 |
| $ | 43,898 |
| $ | 24,461 |
| $ | 17,377 |
| $ | 13,700 |
|
| Fixed charges | 20,802 |
| 16,551 |
| 12,567 |
| 13,502 |
| 13,468 |
|
| Earnings, including interest on deposits | 78,599 |
| 60,449 |
| 37,028 |
| 30,879 |
| 27,168 |
|
| Less: interest on deposits | 12,024 |
| 9,537 |
| 6,974 |
| 8,351 |
| 9,912 |
|
| Earnings, excluding interest on deposits | $ | 66,575 |
| $ | 50,912 |
| $ | 30,054 |
| $ | 22,528 |
| $ | 17,256 |
|
| | | | | | |
Fixed charges: | | | | | |
| Interest on deposits | $ | 12,024 |
| $ | 9,537 |
| $ | 6,974 |
| $ | 8,351 |
| $ | 9,912 |
|
| Interest on borrowings, including rent | 8,778 |
| 7,014 |
| 5,593 |
| 5,151 |
| 3,556 |
|
| Fixed charges, including interest on deposits | 20,802 |
| 16,551 |
| 12,567 |
| 13,502 |
| 13,468 |
|
| Less: interest on deposits | 12,024 |
| 9,537 |
| 6,974 |
| 8,351 |
| 9,912 |
|
| Fixed charges, excluding interest on deposits | $ | 8,778 |
| $ | 7,014 |
| $ | 5,593 |
| $ | 5,151 |
| $ | 3,556 |
|
| Preferred stock dividend requirements | 240 |
| 169 |
| − |
| − |
| − |
|
| Combined fixed charges and preferred stock dividend requirements, including deposits | $ | 21,042 |
| $ | 16,720 |
| $ | 12,567 |
| $ | 13,502 |
| $ | 13,468 |
|
| Combined fixed charges and preferred stock dividend requirements, excluding deposits | 9,018 |
| 7,183 |
| 5,593 |
| 5,151 |
| 3,556 |
|
| | | | | | |
Ratio of Earnings to Fixed Charges: | | | | | |
| Excluding interest on deposits | 7.58x |
| 7.26x |
| 5.37x |
| 4.37x |
| 4.85x |
|
| Including interest on deposits | 3.78 |
| 3.65 |
| 2.95 |
| 2.29 |
| 2.02 |
|
| | | | | | |
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements: | | | | | |
| Excluding interest on deposits | 7.38x |
| 7.09x |
| 5.37x |
| 4.37x |
| 4.85x |
|
| Including interest on deposits | 3.74 |
| 3.62 |
| 2.95 |
| 2.29 |
| 2.02 |
|
