First Bancorp (FBNC) 10-Q 2010 Q2 Quarterly report

Exhibit 12

FIRST BANCORP

COMPUTATION OF EARNINGS TO FIXED CHARGES AND PREFERRED SHARE DIVIDENDS

(In thousands, except for ratios)

(Unaudited)

	Six Months Ended June 30,						Years Ended December 31,
	2010			2009			2009			2008			2007			2006			2005
Including Interest on Deposits:
Earnings:
Income before income taxes	$	13,081			79,524			97,877			35,125			34,960			30,725			32,919
Fixed charges		19,029			24,640			49,075			61,483			69,837			54,856			33,006
Total earnings	$	32,110			104,164			146,952			96,608			104,797			85,581			65,925
Fixed charges:
Interest on deposits	$	16,231			22,649			45,518			53,241			59,553			46,032			28,516
Interest on borrowings		1,083			1,901			3,377			7,947			9,886			8,400			4,085
Amortization of debt issuance costs		—			—			—			115			219			239			237
Interest portion of rental expense (1)		90			90			180			180			179			185			168
Total fixed charges	$	17,404			24,640			49,075			61,483			69,837			54,856			33,006
Preferred dividend requirements		1,625			1,561			3,169			—			—			—			—
Total fixed charges and preferred
dividends	$	19,029			26,201			52,244			61,483			69,837			54,856			33,006
Ratio of earnings to fixed charges,
including interest on deposits		1.84	x		4.23	x		2.99	x		1.57	x		1.50	x		1.56	x		2.00	x
Ratio of earnings to fixed charges and
preferred dividends, including
interest on deposits		1.69	x		3.98	x		2.81	x		1.57	x		1.50	x		1.56	x		2.00	x
Excluding Interest on Deposits:
Earnings:
Income before income taxes	$	13,081			79,524			97,877			35,125			34,960			30,725			32,919
Fixed charges		2,798			3,552			3,557			8,242			10,284			8,824			4,490
Total earnings	$	15,879			83,076			101,434			43,367			45,244			39,549			37,409
Fixed charges:
Interest on borrowings	$	1,083			1,901			3,377			7,947			9,886			8,400			4,085
Amortization of debt issuance costs		—			—			—			115			219			239			237
Interest portion of rental expense (1)		90			90			180			180			179			185			168
Total fixed charges	$	1,173			1,991			3,557			8,242			10,284			8,824			4,490
Preferred dividend requirements		1,625			1,561			3,169			—			—			—			—
Total fixed charges and preferred
dividends	$	2,798			3,552			6,726			8,242			10,284			8,824			4,490
Ratio of earnings to fixed charges,
excluding interest on deposits		13.54	x		41.73	x		28.52	x		5.26	x		4.40	x		4.48	x		8.33	x
Ratio of earnings to fixed charges and
preferred dividends, excluding
interest on deposits		5.68	x		23.39	x		15.08	x		5.26	x		4.40	x		4.48	x		8.33	x

(1) Estimated to be one-third of rental expense.