First Bancorp (FBNC) 10-Q 2011 Q3 Quarterly report

Exhibit 12

FIRST BANCORP

COMPUTATION OF EARNINGS TO FIXED CHARGES AND PREFERRED SHARE DIVIDENDS

(In thousands, except for ratios)

(Unaudited)

	Nine Months Ended September 30,						Years Ended December 31,
	2011			2010			2010			2009			2008			2007			2006
Including Interest on Deposits:
Earnings:
Income before income taxes	$	19,739			19,007			14,942			97,877			35,125			34,960			30,725
Fixed charges		18,438			25,188			32,087			49,075			61,483			69,837			54,856
Total earnings	$	38,177			44,195			47,029			146,952			96,608			104,797			85,581
Fixed charges:
Interest on deposits	$	16,684			23,476			29,930			45,518			53,241			59,553			46,032
Interest on borrowings		1,619			1,577			1,977			3,377			7,947			9,886			8,400
Amortization of debt issuance costs		—			—			—			—			115			219			239
Interest portion of rental expense (1)		135			135			180			180			180			179			185
Total fixed charges	$	18,438			25,188			32,087			49,075			61,483			69,837			54,856
Preferred dividend requirements		2,440			2,438			3,250			3,169			—			—			—
Total fixed charges and preferred dividends	$	20,878			27,626			35,337			52,244			61,483			69,837			54,856
Ratio of earnings to fixed charges, including interest on deposits		2.07	x		1.75	x		1.47	x		2.99	x		1.57	x		1.50	x		1.56	x
Ratio of earnings to fixed charges and preferred dividends, including interest on deposits		1.83	x		1.60	x		1.33	x		2.81	x		1.57	x		1.50	x		1.56	x
Excluding Interest on Deposits:
Earnings:
Income before income taxes	$	19,739			19,007			14,942			97,877			35,125			34,960			30,725
Fixed charges		4,194			1,712			2,157			3,557			8,242			10,284			8,824
Total earnings	$	23,933			20,719			17,099			101,434			43,367			45,244			39,549
Fixed charges:
Interest on borrowings	$	1,619			1,577			1,977			3,377			7,947			9,886			8,400
Amortization of debt issuance costs		—			—			—			—			115			219			239
Interest portion of rental expense (1)		135			135			180			180			180			179			185
Total fixed charges	$	1,754			1,712			2,157			3,557			8,242			10,284			8,824
Preferred dividend requirements		2,440			2,438			3,250			3,169			—			—			—
Total fixed charges and preferred dividends	$	4,194			4,150			5,407			6,726			8,242			10,284			8,824
Ratio of earnings to fixed charges, excluding interest on deposits		13.64	x		12.10	x		7.93	x		28.52	x		5.26	x		4.40	x		4.48	x
Ratio of earnings to fixed charges and preferred dividends, excluding interest on deposits		5.71	x		4.99	x		3.16	x		15.08	x		5.26	x		4.40	x		4.48	x

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