1 EXHIBIT 12. STATEMENT RE: COMPUTATION OF RATIOS FIRST HAWAIIAN, INC. AND SUBSIDIARIES COMPUTATION OF CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES YEAR ENDED DECEMBER 31, ---------------------------------------------------------------------------------- 1996 1995 1994 1993 1992 ------------- ------------ ------------ ------------ ------------ (dollars in thousands) Income before income taxes and cumulative effect of a change in accounting principle $ 115,834 $ 122,138 $ 111,501 $ 119,105 $ 127,880 ---------- ----------- ---------- ---------- ----------- Fixed charges:(1) Interest expense 252,795 265,297 179,688 163,541 217,693 Rental expense 4,932 4,600 5,355 4,013 5,801 ---------- ----------- ---------- ---------- ----------- 257,727 269,897 185,043 167,554 223,494 Less interest on deposits 182,402 176,048 120,289 129,719 186,725 ---------- ----------- ---------- ---------- ----------- Net fixed charges 75,325 93,849 64,754 37,835 36,769 ---------- ----------- ---------- ---------- ----------- Earnings, excluding interest on deposits $ 191,159 $ 215,987 $ 176,255 $ 156,940 $ 164,649 ========== =========== ========== ========== =========== Earnings, including interest on deposits $ 373,561 $ 392,035 $ 296,544 $ 286,659 $ 351,374 ========== =========== ========== ========== =========== Ratio of earnings to fixed charges: Excluding interest on deposits 2.54x 2.30x 2.72x 4.15x 4.48x Including interest on deposits 1.45x 1.45x 1.60x 1.71x 1.57x (1) For purposes of computing the above ratios, earnings represent income before income taxes and cumulative effect of a change in accounting principle plus fixed charges. Fixed charges, excluding interest on deposits, include interest (other than on deposits), whether expensed or capitalized, and that portion of rental expense (generally one third) deemed representative of the interest factor. Fixed charges, including interest on deposits, include all interest, whether expensed or capitalized, and that portion of rental expense (generally one third) deemed representative of the interest factor.