First Bancorp (FBNC) 10-Q 2015 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,
	2015		2014		2014		2013		2012			2011		2010
Including Interest on Deposits:
Earnings:
Income (loss) before income taxes	$	20,150		19,046		38,531		32,780		(40,358	)		21,012		14,942
Fixed charges		3,612		4,483		8,625		11,345		17,762			23,973		32,087
Total earnings (loss)	$	23,762		23,529		47,156		44,125		(22,596	)		44,985		47,029
Fixed charges:
Interest on deposits	$	2,798		3,741		7,072		9,960		15,454			21,351		29,930
Interest on borrowings		612		547		1,151		1,025		1,866			2,214		1,977
Amortization of debt issuance costs		—		—		—		—		—			—		—
Interest portion of rental expense (1)		202		195		402		360		442			408		180
Total fixed charges	$	3,612		4,483		8,625		11,345		17,762			23,973		32,087
Preferred dividend requirements		429		434		868		895		2,809			3,234		3,249
Total fixed charges and preferred dividends	$	4,041		4,917		9,493		12,240		20,571			27,207		35,336
Ratio of earnings to fixed charges, including interest on deposits		6.58x		5.25x		5.47x		3.89x		(1.27x	)		1.88x		1.47x
Ratio of earnings to fixed charges and preferred dividends, including interest on deposits		5.88x		4.79x		4.97x		3.60x		(1.10x	)		1.65x		1.33x
Excluding Interest on Deposits:
Earnings:
Income (loss) before income taxes	$	20,150		19,046		38,531		32,780		(40,358	)		21,012		14,942
Fixed charges		814		742		1,553		1,385		2,308			2,622		2,157
Total earnings (loss)	$	20,964		19,788		40,084		34,165		(38,050	)		23,634		17,099
Fixed charges:
Interest on borrowings	$	612		547		1,151		1,025		1,866			2,214		1,977
Amortization of debt issuance costs		—		—		—		—		—			—		—
Interest portion of rental expense (1)		202		195		402		360		442			408		180
Total fixed charges	$	814		742		1,553		1,385		2,308			2,622		2,157
Preferred dividend requirements		429		434		868		895		2,809			3,234		3,249
Total fixed charges and preferred dividends	$	1,243		1,176		2,421		2,280		5,117			5,856		5,406
Ratio of earnings to fixed charges, excluding interest on deposits		25.75x		26.67x		25.81x		24.67x		(16.49x	)		9.01x		7.93x
Ratio of earnings to fixed charges and preferred dividends, excluding interest on deposits		16.87x		16.83x		16.56x		14.98x		(7.44x	)		4.04x		3.16x

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