Wells Fargo Real Estate Investment (WFE) 10-Q 2016 Q1 Quarterly report

Exhibit (12)

Wells Fargo Real Estate Investment Corporation
Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends
	Quarter ended March 31,
(in thousands)	2016	2015
Excluding interest on deposits (1)
Income before income taxes	145,029	148,712
Fixed charges, excluding preferred dividends and capitalized interest	604	236
Earnings	145,633	148,948
Interest expense	604	236
Estimated interest component of net rental expense	—	—
Preferred dividends	4,397	4,397
Capitalized interest	—	—
Fixed charges and preferred dividends	5,001	4,633
Ratio of earnings to fixed charges and preferred dividends (2)	29.12	32.15

(1) As defined in Item 503(d) of Regulation S-K.

(2) These computations are included herein in compliance with Securities and Exchange Commission regulations. However, management believes that fixed charge ratios are not meaningful measures for the business of Wells Fargo Real Estate Investment Corporation. For example, even if there was no change in net income, the ratios would decline if interest income and interest expense increase by the same amount due to an increase in the level of interest rates or, conversely, they would increase if interest income and interest expense decrease by the same amount due to a decrease in the level of interest rates.