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, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations | $ | 4,034 | $ | (47,459 | ) | $ | 21,209 | $ | 23,607 | $ | 2,852 | $ | 16,113 | |||||||||||
Fixed charges | 7,051 | 36,518 | 49,153 | 45,715 | 37,379 | 32,694 | ||||||||||||||||||
Earnings, including interest on deposits (a) | $ | 11,085 | $ | (10,941 | ) | $ | 70,362 | $ | 69,322 | $ | 40,231 | $ | 48,807 | |||||||||||
LESS: Interest on deposits | 5,015 | 29,349 | 42,714 | 37,445 | 30,255 | 24,624 | ||||||||||||||||||
Earnings, excluding interest on deposits (b) | $ | 6,070 | $ | (40,290 | ) | $ | 27,648 | $ | 31,877 | $ | 9,976 | $ | 24,183 | |||||||||||
FIXED CHARGES: | ||||||||||||||||||||||||
Interest on deposits | $ | 5,015 | $ | 29,349 | $ | 42,714 | $ | 37,445 | $ | 30,255 | $ | 24,624 | ||||||||||||
Interest on borrowings | 751 | 4,268 | 4,425 | 6,159 | 6,140 | 6,144 | ||||||||||||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness(1) | — | — | — | — | — | — | ||||||||||||||||||
Estimated interest component of rent expense(2) | 37 | 111 | 97 | 90 | 65 | 65 | ||||||||||||||||||
Preferred security dividends(3) | 1,248 | 2,790 | 1,917 | 2,021 | 919 | 1,861 | ||||||||||||||||||
Fixed charges, including interest on deposits (c) | $ | 7,051 | $ | 36,518 | $ | 49,153 | $ | 45,715 | $ | 37,379 | $ | 32,694 | ||||||||||||
LESS: Interest on deposits | 5,015 | 29,349 | 42,714 | 37,445 | 30,255 | 24,624 | ||||||||||||||||||
Fixed charges, excluding interest on deposits (d) | $ | 2,036 | $ | 7,169 | $ | 6,439 | $ | 8,270 | $ | 7,124 | $ | 8,070 | ||||||||||||
Ratio of earnings to combined fixed charges and preferred security dividends: | ||||||||||||||||||||||||
Including interest on deposits (a / c) | 1.57 | * | 1.43 | 1.52 | 1.08 | 1.49 | ||||||||||||||||||
Excluding interest on deposits (b / d) | 2.98 | * | 4.29 | 3.85 | 1.40 | 3.00 |
(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. |