Exhibit 12
First Midwest Bancorp, Inc.
Ratio of Earnings to Fixed Charges (1)
(Dollar Amounts in Thousands)
Years ended December 31, | ||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||
Ratio 1 - Including Interest on Deposits | ||||||||||||||||
Earnings available for fixed charges: | ||||||||||||||||
Income from continuing operations | $ | (25,750) | $ | 49,336 | $ | 80,159 | $ | 117,246 | $ | 101,377 | ||||||
Add: | ||||||||||||||||
Income tax provision | (50,176) | (13,291) | 13,853 | 35,052 | 34,452 | |||||||||||
Fixed charges | 91,308 | 163,680 | 237,930 | 225,585 | 131,690 | |||||||||||
Total earnings available for fixed charges | $ | 15,382 | $ | 199,725 | $ | 331,942 | $ | 377,883 | $ | 267,519 | ||||||
Fixed charges (2) | ||||||||||||||||
Interest on deposits | $ | 64,177 | $ | 110,622 | $ | 166,267 | $ | 148,118 | $ | 86,675 | ||||||
Interest on borrowed funds | 12,569 | 37,192 | 55,540 | 62,974 | 35,834 | |||||||||||
Interest on subordinated debt | 13,473 | 14,796 | 15,025 | 13,458 | 8,341 | |||||||||||
Total interest expense | 90,219 | 162,610 | 236,832 | 224,550 | 130,850 | |||||||||||
Portion of rental expense representative of interest factor | 1,089 | 1,070 | 1,098 | 1,035 | 840 | |||||||||||
Total fixed charges | 91,308 | 163,680 | 237,930 | 225,585 | 131,690 | |||||||||||
Preference security dividend (3) | 30,267 | 520 | - | - | - | |||||||||||
Total fixed charges and preferred stock dividends | $ | 121,575 | $ | 164,200 | $ | 237,930 | $ | 225,585 | $ | 131,690 | ||||||
Ratio of earnings to fixed charges | 0.17 | x | 1.22 | x | 1.40 | x | 1.68 | x | 2.03 | x | ||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 0.13 | x | 1.22 | x | 1.40 | x | 1.68 | x | 2.03 | x | ||||||
Ratio 2 - Excluding Interest on Deposits | ||||||||||||||||
Earnings available for fixed charges: | ||||||||||||||||
Income from continuing operations | $ | (25,750) | $ | 49,336 | $ | 80,159 | $ | 117,246 | $ | 101,377 | ||||||
Add: | ||||||||||||||||
Income tax provision | (50,176) | (13,291) | 13,853 | 35,052 | 34,452 | |||||||||||
Fixed charges | 27,131 | 53,058 | 71,663 | 77,467 | 45,015 | |||||||||||
Total earnings available for fixed charges | $ | (48,795) | $ | 89,103 | $ | 165,675 | $ | 229,765 | $ | 180,844 | ||||||
Fixed charges (2): | ||||||||||||||||
Interest on borrowed funds | $ | 12,569 | $ | 37,192 | $ | 55,540 | $ | 62,974 | $ | 35,834 | ||||||
Interest on subordinated debt | 13,473 | 14,796 | 15,025 | 13,458 | 8,341 | |||||||||||
Portion of rental expense representative of interest factor | 1,089 | 1,070 | 1,098 | 1,035 | 840 | |||||||||||
Total fixed charges | 27,131 | 53,058 | 71,663 | 77,467 | 45,015 | |||||||||||
Preference security dividend (3) | 30,267 | 520 | - | - | - | |||||||||||
Total fixed charges and preferred stock dividends | $ | 57,398 | $ | 53,578 | $ | 71,663 | $ | 77,467 | $ | 45,015 | ||||||
Ratio of earnings to fixed charges | (1.80) | x | 1.68 | x | 2.31 | x | 2.97 | x | 4.02 | x | ||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | (0.85) | x | 1.68 | x | 2.31 | x | 2.97 | x | 4.02 | 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). |