Exhibit 12.1
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:
Nine Months | ||||||||||||||||||||||||
Ended | Year Ended December 31, | |||||||||||||||||||||||
Sept 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Ratio of earnings to fixed charges (1) | ||||||||||||||||||||||||
Excluding Interest on Deposits | 4.43 | 4.29 | 4.20 | 1.77 | 2.12 | 4.36 | ||||||||||||||||||
Including Interest on Deposits | 2.79 | 2.38 | 2.02 | 1.26 | 1.31 | 2.09 |
(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 | $ | 80,874,000 | $ | 99,531,000 | $ | 97,135,000 | $ | 35,719,000 | $ | 52,677,000 | $ | 133,077,000 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest on deposits | 21,513,000 | 41,965,000 | 64,620,000 | 89,892,000 | 121,021,000 | 82,272,000 | ||||||||||||||||||
Borrowings and long-term debt | 23,181,000 | 29,508,000 | 29,579,000 | 45,574,000 | 46,126,000 | 39,043,000 | ||||||||||||||||||
Rent expense interest factor (1/3) | 424,897 | 721,687 | 794,866 | 801,147 | 731,723 | 530,030 | ||||||||||||||||||
Total fixed charges: | ||||||||||||||||||||||||
Including interest on deposits | $ | 45,118,897 | $ | 72,194,687 | $ | 94,993,866 | $ | 136,267,147 | $ | 167,878,723 | $ | 121,845,030 | ||||||||||||
Excluding interest on deposits | $ | 23,605,897 | $ | 30,229,687 | $ | 30,373,866 | $ | 46,375,147 | $ | 46,857,723 | $ | 39,573,030 |