First Bancorp (FBNC) 10-Q 2012 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,
	2012			2011			2011			2010			2009			2008			2007
Including Interest on Deposits:
Earnings:
Income (loss) before income taxes	$	(3,684	)		15,868			21,012			14,942			97,877			35,125			34,960
Fixed charges		9,501			12,654			23,973			32,087			49,075			61,483			69,837
Total earnings	$	5,817			28,522			44,985			47,029			146,952			96,608			104,797
Fixed charges:
Interest on deposits	$	8,306			11,534			21,351			29,930			45,518			53,241			59,553
Interest on borrowings		1,038			1,030			2,214			1,977			3,377			7,947			9,886
Amortization of debt issuance costs		—			—			—			—			—			115			219
Interest portion of rental expense (1)		157			90			408			180			180			180			179
Total fixed charges	$	9,501			12,654			23,973			32,087			49,075			61,483			69,837
Preferred dividend requirements		1,589			1,625			3,234			3,250			3,169			—			—
Total fixed charges and preferred dividends	$	11,090			14,279			27,207			35,337			52,244			61,483			69,837
Ratio of earnings to fixed charges, including interest on deposits		0.61	x		2.25	x		1.88	x		1.47	x		2.99	x		1.57	x		1.50	x
Ratio of earnings to fixed charges and preferred dividends, including interest on deposits		0.52	x		2.00	x		1.65	x		1.33	x		2.81	x		1.57	x		1.50	x
Excluding Interest on Deposits:
Earnings:
Income (loss) before income taxes	$	(3,684	)		15,868			21,012			14,942			97,877			35,125			34,960
Fixed charges		1,195			1,120			2,622			2,157			3,557			8,242			10,284
Total earnings (loss)	$	(2,489	)		16,988			23,634			17,099			101,434			43,367			45,244
Fixed charges:
Interest on borrowings	$	1,038			1,030			2,214			1,977			3,377			7,947			9,886
Amortization of debt issuance costs		—			—			—			—			—			115			219
Interest portion of rental expense (1)		157			90			408			180			180			180			179
Total fixed charges	$	1,195			1,120			2,622			2,157			3,557			8,242			10,284
Preferred dividend requirements		1,589			1,625			3,234			3,250			3,169			—			—
Total fixed charges and preferred dividends	$	2,784			2,745			5,856			5,407			6,726			8,242			10,284
Ratio of earnings to fixed charges, excluding interest on deposits		(2.08	x)		15.17	x		9.01	x		7.93	x		28.52	x		5.26	x		4.40	x
Ratio of earnings to fixed charges and preferred dividends, excluding interest on deposits		(0.89	x)		6.19	x		4.04	x		3.16	x		15.08	x		5.26	x		4.40	x

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