Exhibit 12 | |||||||||||||||||||||
First Midwest Bancorp, Inc. | |||||||||||||||||||||
Ratio of Earnings to Fixed Charges (1) | |||||||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
Ratio 1 - Including Interest on Deposits | |||||||||||||||||||||
Earnings available for fixed charges: | |||||||||||||||||||||
Net income (loss) from continuing operations | $ | 69,306 | $ | 79,306 | $ | (21,054 | ) | $ | 36,563 | $ | (9,684 | ) | |||||||||
Add: | |||||||||||||||||||||
Income tax expense (benefit) | 31,170 | 48,715 | (28,882 | ) | 4,508 | (28,544 | ) | ||||||||||||||
Fixed charges | 24,405 | 28,134 | 36,011 | 40,936 | 50,589 | ||||||||||||||||
Total earnings available for fixed charges | 124,881 | 156,155 | (13,925 | ) | 82,007 | 12,361 | |||||||||||||||
Fixed charges (2): | |||||||||||||||||||||
Interest on deposits | $ | 10,377 | $ | 11,901 | $ | 18,052 | $ | 27,256 | $ | 37,127 | |||||||||||
Interest on borrowed funds | 573 | 1,607 | 2,009 | 2,743 | 3,267 | ||||||||||||||||
Interest on senior and subordinated debt | 12,062 | 13,607 | 14,840 | 9,892 | 9,124 | ||||||||||||||||
Total interest expense | 23,012 | 27,115 | 34,901 | 39,891 | 49,518 | ||||||||||||||||
Portion of rental expense representative of interest factor | 1,393 | 1,019 | 1,110 | 1,045 | 1,071 | ||||||||||||||||
Total fixed charges | 24,405 | 28,134 | 36,011 | 40,936 | 50,589 | ||||||||||||||||
Preference security dividend (3) | — | — | — | 12,105 | 40,656 | ||||||||||||||||
Total fixed charges and preferred stock dividends | $ | 24,405 | $ | 28,134 | $ | 36,011 | $ | 53,041 | $ | 91,245 | |||||||||||
Ratio of earnings to fixed charges | 5.12 | x | 5.55 | x | (0.39 | ) | x | 2.00 | x | 0.24 | x | ||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 5.12 | x | 5.55 | x | (0.39 | ) | x | 1.55 | x | 0.14 | x | ||||||||||
Ratio 2 - Excluding Interest on Deposits | |||||||||||||||||||||
Earnings available for fixed charges: | |||||||||||||||||||||
Net income (loss) from continuing operations | $ | 69,306 | $ | 79,306 | $ | (21,054 | ) | $ | 36,563 | $ | (9,684 | ) | |||||||||
Add: | |||||||||||||||||||||
Income tax expense (benefit) | 31,170 | 48,715 | (28,882 | ) | 4,508 | (28,544 | ) | ||||||||||||||
Fixed charges | 14,028 | 16,233 | 17,959 | 13,680 | 13,462 | ||||||||||||||||
Total earnings available for fixed charges | 114,504 | 144,254 | (31,977 | ) | 54,751 | (24,766 | ) | ||||||||||||||
Fixed charges (2): | |||||||||||||||||||||
Interest on borrowed funds | $ | 573 | 1,607 | 2,009 | 2,743 | 3,267 | |||||||||||||||
Interest on senior and subordinated debt | 12,062 | 13,607 | 14,840 | 9,892 | 9,124 | ||||||||||||||||
Portion of rental expense representative of interest factor | 1,393 | 1,019 | 1,110 | 1,045 | 1,071 | ||||||||||||||||
Total fixed charges | 14,028 | 16,233 | 17,959 | 13,680 | 13,462 | ||||||||||||||||
Preference security dividend (3) | — | — | — | 12,105 | 40,656 | ||||||||||||||||
Total fixed charges and preferred stock dividends | $ | 14,028 | $ | 16,233 | $ | 17,959 | $ | 25,785 | $ | 54,118 | |||||||||||
Ratio of earnings to fixed charges | 8.16 | x | 8.89 | x | (1.78 | ) | x | 4.00 | x | (1.84 | ) | x | |||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 8.16 | x | 8.89 | x | (1.78 | ) | x | 2.12 | x | (0.46 | ) | x |
(1) | The ratio of earnings to fixed charges represents the number of times "fixed charges" are covered by "earnings." |
(2) | "Fixed charges" consist of interest on outstanding debt plus one-third (the proportion deemed representative of the interest factor) of operating lease expense. |
(3) | This is computed as the amount of the preferred dividend divided by (1 minus the effective income tax rate applicable to continuing operations). |