Exhibit 12
COMPUTATION OF RATIOS
| RETURN ON AVERAGE ASSETS | Net income/Average assets | |
| NET INTEREST MARGIN (computed on a fully taxable equivalent basis) | Fully taxable equivalent net interest income/Average earning assets | |
| NONINTEREST EXPENSE EXCLUDING IMPAIRMENT CHARGE TO NET REVENUE (computed on a fully taxable equivalent basis) [Also referred to as EFFICIENCY RATIO BEFORE IMPAIRMENT CHARGE] | Total other expense (excluding goodwill impairment charge)/(Fully taxable equivalent net interest income plus total other income adjusted for gains or losses on sales of securities) | |
| DIVIDEND PAYOUT RATIO | Dividends declared with respect to common shares/Net income available to common shareholders | |
| AVERAGE STOCKHOLDERS’ EQUITY TO AVERAGE TOTAL ASSETS | Average stockholders’ equity/Average assets | |
| AVERAGE COMMON STOCKHOLDERS’ EQUITY | Average stockholders’ equity less preferred stock | |
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | (Stockholders’ equity less goodwill and other intangible assets and preferred stock)/(Assets less goodwill and other intangible assets) | |
| TIER 1 CAPITAL RATIO | (Stockholders’ equity less goodwill and other intangible assets and accumulated other comprehensive income (loss) plus qualifying trust preferred securities (“Tier 1 capital”))/Risk-adjusted assets | |
| RISK-BASED CAPITAL RATIO | (Tier 1 capital plus qualifying loan loss allowance and subordinated debentures and notes)/Risk-adjusted assets | |
| LEVERAGE RATIO | Tier 1 capital/(Average total assets less goodwill and other intangible assets) | |
| ALLOWANCE FOR LOAN LOSSES TO END OF YEAR LOANS | Allowance for loan losses/Gross loans net of unearned interest | |
| NET CHARGE-OFFS TO AVERAGE LOANS | Net charge-offs/Average gross loans net of unearned interest | |
| NONPERFORMING LOANS TO LOANS | (Nonaccrual loans plus loans past due 90 days or greater plus renegotiated loans)/Gross loans net of unearned interest | |
| NONPERFORMING ASSETS TO LOANS | (Nonaccrual loans plus loans past due 90 days or greater plus renegotiated loans plus other real estate owned)/Gross loans net of unearned interest | |
| NONPERFORMING ASSETS TO TOTAL ASSETS | (Nonaccrual loans plus loans past due 90 days or greater plus renegotiated loans plus other real estate owned)/Total assets |
| RETURN ON AVERAGE ASSETS BEFORE IMPAIRMENT CHARGE | (Net income plus goodwill impairment charge)/Average assets | |
| RETURN ON AVERAGE COMMON EQUITY | Net income available to common shareholders/(stockholders’ equity less preferred stock) | |
| RETURN ON AVERAGE COMMON EQUITY BEFORE IMPAIRMENT CHARGE | (Net income available to common shareholders plus goodwill impairment charge)/(stockholders’ equity less preferred stock) |
Computation of Ratio of Eanings to Fixed Charges
The following table shows the ratio of earnings to fixed charges for Park, which includes our subsidiaries, on a consolidated basis:
| Year Ended December 31, | ||||||||||||||||||||
| 2010 (Restated) | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
| Ratio of earnings to fixed charges (1): | ||||||||||||||||||||
| Excluding Interest on Deposits | 3.47 | 4.20 | 1.77 | 2.12 | 4.36 | |||||||||||||||
| Including Interest on Deposits | 2.04 | 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 | $ | 74,737,000 | $ | 97,135,000 | $ | 35,719,000 | $ | 52,677,000 | $ | 133,077,000 | ||||||||||
| Fixed Charges: | ||||||||||||||||||||
| Interest on deposits | 41,965,000 | 64,620,000 | 89,892,000 | 121,021,000 | 82,272,000 | |||||||||||||||
| Borrowings and long-term debt | 29,508,000 | 29,579,000 | 45,574,000 | 46,126,000 | 39,043,000 | |||||||||||||||
| Rent expense interest factor (1/3) | 721,687 | 794,866 | 801,147 | 731,723 | 530,030 | |||||||||||||||
| Total fixed charges: | ||||||||||||||||||||
| Including interest on deposits | $ | 72,194,687 | $ | 94,993,866 | $ | 136,267,147 | $ | 167,878,723 | $ | 121,845,030 | ||||||||||
| Excluding interest on deposits | $ | 30,229,687 | $ | 30,373,866 | $ | 46,375,147 | $ | 46,857,723 | $ | 39,573,030 | ||||||||||
Computation of Ratio of Eanings 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:
| Year Ended December 31, | ||||||||||||||||||||
| 2010 (Restated) | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
| Ratio of earnings to fixed charges and preferred dividends (1): | ||||||||||||||||||||
| Excluding Interest on Deposits | 2.94 | 3.52 | 1.77 | 2.12 | 4.36 | |||||||||||||||
| Including Interest on Deposits | 1.93 | 1.94 | 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, 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 | $ | 74,737,000 | $ | 97,135,000 | $ | 35,719,000 | $ | 52,677,000 | $ | 133,077,000 | ||||||||||
| Fixed Charges: | ||||||||||||||||||||
| Interest on deposits | 41,965,000 | 64,620,000 | 89,892,000 | 121,021,000 | 82,272,000 | |||||||||||||||
| Borrowings and long-term debt | 29,508,000 | 29,579,000 | 45,574,000 | 46,126,000 | 39,043,000 | |||||||||||||||
| Preferred dividends and accretion | 8,295,714 | 8,231,429 | 202,857 | |||||||||||||||||
| Rent expense interest factor (1/3) | 721,687 | 794,866 | 801,147 | 731,723 | 530,030 | |||||||||||||||
| Total fixed charges: | ||||||||||||||||||||
| Including interest on deposits | $ | 80,490,402 | $ | 103,225,295 | $ | 136,470,004 | $ | 167,878,723 | $ | 121,845,030 | ||||||||||
| Excluding interest on deposits | $ | 38,525,402 | $ | 38,605,295 | $ | 46,578,004 | $ | 46,857,723 | $ | 39,573,030 | ||||||||||
