Section 3: EX-12 (EXHIBIT 12)
Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
The following table shows the ratio of earnings to fixed charges for Park, which includes our subsidiaries, on a consolidated basis:
| Six Months | ||||||||||||||||||
| Ended | Year Ended December 31, | |||||||||||||||||
| June 30, 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||
| Ratio of earnings to fixed charges (1) | ||||||||||||||||||
| Excluding Interest on Deposits | 5.34 | 4.68 | 3.47 | 4.20 | 1.77 | 2.12 | ||||||||||||
| Including Interest on Deposits | 3.66 | 2.97 | 2.04 | 2.02 | 1.26 | 1.31 | ||||||||||||
(1) For purposes of computing the ratios, earnings consist of income before income taxes and fixed charges. Fixed charges consist of interest on borrowings and long-term debt, including/excluding interest on deposits, and one-third of rental expense, which Park National Corporation believes is representative of the interest factor.
| Earnings: | |||||||||||||||||||||||||
| Income before income taxes | $ | 69,686,000 | $ | 116,555,000 | $ | 74,737,000 | $ | 97,135,000 | $ | 35,719,000 | $ | 52,677,000 | |||||||||||||
| Fixed Charges: | |||||||||||||||||||||||||
| Interest on deposits | 10,116,000 | 27,655,000 | 41,965,000 | 64,620,000 | 89,892,000 | 121,021,000 | |||||||||||||||||||
| Borrowings and long-term debt | 15,800,000 | 30,992,000 | 29,508,000 | 29,579,000 | 45,574,000 | 46,126,000 | |||||||||||||||||||
| Rent expense interest factor (1/3) | 271,622 | 662,843 | 721,687 | 794,866 | 801,147 | 731,723 | |||||||||||||||||||
| Total fixed charges: | |||||||||||||||||||||||||
| Including interest on deposits | $ | 26,187,622 | $ | 59,309,843 | $ | 72,194,687 | $ | 94,993,866 | $ | 136,267,147 | $ | 167,878,723 | |||||||||||||
| Excluding interest on deposits | $ | 16,071,622 | $ | 31,654,843 | $ | 30,229,687 | $ | 30,373,866 | $ | 46,375,147 | $ | 46,857,723 | |||||||||||||
Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends
The following table shows the ratio of earnings to fixed charges and preferred dividends for Park, which includes our subsidiaries, on a consolidated basis:
| Six Months | ||||||||||||||||||
| Ended | Year Ended December 31, | |||||||||||||||||
| June 30, 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||
| Ratio of earnings to fixed charges and preferred dividends (1) | ||||||||||||||||||
| Excluding Interest on Deposits | 4.32 | 3.91 | 2.94 | 3.52 | 1.77 | 2.12 | ||||||||||||
| Including Interest on Deposits | 3.24 | 2.72 | 1.93 | 1.94 | 1.26 | 1.31 | ||||||||||||
(1) For purposes of computing the ratios, earnings consist of income before income taxes and fixed charges. Fixed charges consist of interest on borrowings and long-term debt, including/excluding interest on deposits, preferred dividends and accretion, and one-third of rental expense, which Park National Corporation believes is representative of the interest factor.
| Earnings: | |||||||||||||||||||||||||
| Income before income taxes | $ | 69,686,000 | $ | 116,555,000 | $ | 74,737,000 | $ | 97,135,000 | $ | 35,719,000 | $ | 52,677,000 | |||||||||||||
| Fixed Charges: | |||||||||||||||||||||||||
| Interest on deposits | 10,116,000 | 27,655,000 | 41,965,000 | 64,620,000 | 89,892,000 | 121,021,000 | |||||||||||||||||||
| Borrowings and long-term debt | 15,800,000 | 30,992,000 | 29,508,000 | 29,579,000 | 45,574,000 | 46,126,000 | |||||||||||||||||||
| Preferred dividends and accretion | 4,892,857 | 8,365,714 | 8,295,714 | 8,231,429 | 202,857 | — | |||||||||||||||||||
| Rent expense interest factor (1/3) | 271,622 | 662,843 | 721,687 | 794,866 | 801,147 | 731,723 | |||||||||||||||||||
| Total fixed charges: | |||||||||||||||||||||||||
| Including interest on deposits | $ | 26,187,622 | $ | 59,309,843 | $ | 72,194,687 | $ | 94,993,866 | $ | 136,267,147 | $ | 167,878,723 | |||||||||||||
| Excluding interest on deposits | $ | 16,071,622 | $ | 31,654,843 | $ | 30,229,687 | $ | 30,373,866 | $ | 46,375,147 | $ | 46,857,723 | |||||||||||||