Exhibit 12
First Midwest Bancorp, Inc.
Ratio of Earnings to Fixed Charges (1)
(Dollar amounts in thousands)
Years ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Ratio 1—Including Interest on Deposits | ||||||||||||||||||||
Earnings available for fixed charges: | ||||||||||||||||||||
Income from continuing operations | $ | 49,336 | $ | 80,159 | $ | 117,246 | $ | 101,377 | $ | 99,136 | ||||||||||
Add: | ||||||||||||||||||||
Income tax provision | (13,291 | ) | 13,853 | 35,052 | 34,452 | 32,848 | ||||||||||||||
Fixed charges | 163,680 | 237,930 | 225,585 | 131,690 | 87,185 | |||||||||||||||
Total earnings available for fixed charges | $ | 199,725 | $ | 331,942 | $ | 377,883 | $ | 267,519 | $ | 219,169 | ||||||||||
Fixed charges(2): | ||||||||||||||||||||
Interest on deposits | $ | 110,622 | $ | 166,267 | $ | 148,118 | $ | 86,675 | $ | 57,432 | ||||||||||
Interest on borrowed funds | 37,192 | 55,540 | 62,974 | 35,834 | 20,980 | |||||||||||||||
Interest on subordinated debt | 14,796 | 15,025 | 13,458 | 8,341 | 8,066 | |||||||||||||||
Total interest expense | 162,610 | 236,832 | 224,550 | 130,850 | 86,478 | |||||||||||||||
Portion of rental expense representative of interest factor | 1,070 | 1,098 | 1,035 | 840 | 707 | |||||||||||||||
Total fixed charges | 163,680 | 237,930 | 225,585 | 131,690 | 87,185 | |||||||||||||||
Preference security dividend(3) | 520 | — | — | — | — | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 164,200 | $ | 237,930 | $ | 225,585 | $ | 131,690 | $ | 87,185 | ||||||||||
Ratio of earnings to fixed charges | 1.22 | x | 1.40 | x | 1.68 | x | 2.03 | x | 2.51 | x | ||||||||||
Ratio of earnings to combined fixed charges preferred stock dividends | 1.22 | x | 1.40 | x | 1.68 | x | 2.03 | x | 2.51 | x | ||||||||||
Ratio 2—Excluding Interest on Deposits | ||||||||||||||||||||
Earnings available for fixed charges: | ||||||||||||||||||||
Income from continuing operations | $ | 49,336 | $ | 80,159 | $ | 117,246 | $ | 101,377 | $ | 99,136 | ||||||||||
Add: | ||||||||||||||||||||
Income tax provision | (13,291 | ) | 13,853 | 35,052 | 34,452 | 32,848 | ||||||||||||||
Fixed charges . | 53,058 | 71,663 | 77,467 | 45,015 | 29,753 | |||||||||||||||
Total earnings available for fixed charges | $ | 89,103 | $ | 165,675 | $ | 229,765 | $ | 180,844 | $ | 161,737 | ||||||||||
Fixed charges(2): | ||||||||||||||||||||
Interest on borrowed funds | $ | 37,192 | $ | 55,540 | $ | 62,974 | $ | 35,834 | $ | 20,980 | ||||||||||
Interest on subordinated debt | 14,796 | 15,025 | 13,458 | 8,341 | 8,066 | |||||||||||||||
Portion of rental expense representative of interest factor | 1,070 | 1,098 | 1,035 | 840 | 707 | |||||||||||||||
Total fixed charges | 53,058 | 71,663 | 77,467 | 45,015 | 29,753 | |||||||||||||||
Preference security dividend(3) | 520 | — | — | — | — | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 53,578 | $ | 71,663 | $ | 77,467 | $ | 45,015 | $ | 29,753 | ||||||||||
Ratio of earnings to fixed charges | 1.68 | x | 2.31 | x | 2.97 | x | 4.02 | x | 5.44 | x | ||||||||||
Ratio of earnings to combined fixed charges preferred stock dividends | 1.66 | x | 2.31 | x | 2.97 | x | 4.02 | x | 5.44 | 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 $712 preferred dividend divided by (1 minus the effective income tax rate, or - -1.369). |