EXHIBIT 12
FINANCIAL INSTITUTIONS, INC.
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
Three months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
March 31, | Years Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations | $ | 8,826 | $ | 30,639 | $ | 20,581 | $ | (47,459 | ) | $ | 21,209 | $ | 23,607 | |||||||||||
Fixed charges | 6,984 | 23,224 | 27,633 | 36,518 | 49,153 | 45,715 | ||||||||||||||||||
Earnings, including interest on deposits (a) | $ | 15,810 | $ | 53,863 | $ | 48,214 | $ | (10,941 | ) | $ | 70,362 | $ | 69,322 | |||||||||||
LESS: Interest on deposits | 3,197 | 14,853 | 19,090 | 29,349 | 42,714 | 37,445 | ||||||||||||||||||
Earnings, excluding interest on deposits (b) | $ | 12,613 | $ | 39,010 | $ | 29,124 | $ | (40,290 | ) | $ | 27,648 | $ | 31,877 | |||||||||||
FIXED CHARGES: | ||||||||||||||||||||||||
Interest on deposits | $ | 3,197 | $ | 14,853 | $ | 19,090 | $ | 29,349 | $ | 42,714 | $ | 37,445 | ||||||||||||
Interest on borrowings | 604 | 2,867 | 3,127 | 4,268 | 4,425 | 6,159 | ||||||||||||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness(1) | — | — | — | — | — | — | ||||||||||||||||||
Estimated interest component of rent expense(2) | 36 | 142 | 147 | 111 | 97 | 90 | ||||||||||||||||||
Preferred security dividends(3) | 3,147 | 5,362 | 5,269 | 2,790 | 1,917 | 2,021 | ||||||||||||||||||
Fixed charges, including interest on deposits (c) | $ | 6,984 | $ | 23,224 | $ | 27,633 | $ | 36,518 | $ | 49,153 | $ | 45,715 | ||||||||||||
LESS: Interest on deposits | 3,197 | 14,853 | 19,090 | 29,349 | 42,714 | 37,445 | ||||||||||||||||||
Fixed charges, excluding interest on deposits (d) | $ | 3,787 | $ | 8,371 | $ | 8,543 | $ | 7,169 | $ | 6,439 | $ | 8,270 | ||||||||||||
Ratio of earnings to combined fixed charges and preferred security dividends: | ||||||||||||||||||||||||
Including interest on deposits (a / c) | 2.26 | 2.32 | 1.74 | * | 1.43 | 1.52 | ||||||||||||||||||
Excluding interest on deposits (b / d) | 3.33 | 4.66 | 3.41 | * | 4.29 | 3.85 |
(1) | Any discount, premium or capitalized expenses on debt are included in interest on borrowings. | |
(2) | Estimated to be approximately 10% of rent expense. | |
(3) | Preferred security dividends are shown on a tax-equivalent basis, computed using the effective income tax rate from continuing operations for each period shown. | |
* | Ratios for this period are less than 1.00. For the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $47.5 million. |