STERLING FINANCIAL CORP /WA/ - FORM 10-K - EX-12.3 - RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS - March 16, 2010

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10-K - FORM 10-K - STERLING FINANCIAL CORP /WA/d10k.htm
EX-99.2 - SECTION 111 CERTIFICATION - STERLING FINANCIAL CORP /WA/dex992.htm
EX-12.1 - RETURN ON AVERAGE SHAREHOLDERS EQUITY - STERLING FINANCIAL CORP /WA/dex121.htm
EX-31.1 - SECTION 302 CERTIFICATION - STERLING FINANCIAL CORP /WA/dex311.htm
EX-23.1 - CONSENT OF BDO SEIDMAN, LLP - STERLING FINANCIAL CORP /WA/dex231.htm
EX-10.8 - FORM OF AMENDED AND RESTATED DEFERRED COMPENSATION PLAN - STERLING FINANCIAL CORP /WA/dex108.htm
EX-31.2 - SECTION 302 CERTIFICATION - STERLING FINANCIAL CORP /WA/dex312.htm
EX-10.7 - 1998 LONG TERM INCENTIVE PLAN - STERLING FINANCIAL CORP /WA/dex107.htm
EX-12.2 - RETURN ON AVERAGE ASSETS - STERLING FINANCIAL CORP /WA/dex122.htm
EX-32.1 - SECTION 906 CERTIFICATION - STERLING FINANCIAL CORP /WA/dex321.htm
EX-32.2 - SECTION 906 CERTIFICATION - STERLING FINANCIAL CORP /WA/dex322.htm
EX-99.1 - SECTION 111 CERTIFICATION - STERLING FINANCIAL CORP /WA/dex991.htm
EX-21.1 - LIST OF SUBSIDIARIES - STERLING FINANCIAL CORP /WA/dex211.htm
EX-10.9 - 2001 LONG TERM INCENTIVE PLAN - STERLING FINANCIAL CORP /WA/dex109.htm
EX-10.12 - FORM OF SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN - STERLING FINANCIAL CORP /WA/dex1012.htm
EX-10.10 - 2003 LONG TERM INCENTIVE PLAN - STERLING FINANCIAL CORP /WA/dex1010.htm

Exhibit 12.3

Ratio of Earning to Fixed Charges and Preferred Dividends

 

     Years Ended December 31,
     2009     2008     2007    2006    2005
     (Dollars in thousands)

EXCLUDING INTEREST ON DEPOSITS:

             

Pre-tax income

    $ (811,112 )    $ (411,432 )    $ 138,213    $ 108,176    $ 90,623

Preferred stock dividend

      (17,369 )      (1,208 )      0      0      0
                                    

Pre-tax income available to common shareholders

      (828,481 )      (412,640 )      138,213      108,176      90,623

Fixed charges

      109,128        129,282        140,816      105,838      81,930
                                    

Earnings

    $ (719,353 )    $ (283,358 )    $ 279,029    $ 214,014    $ 172,553
                                    

Interest expense-short term borrowings

    $ 16,476      $ 20,820      $ 29,956    $ 35,979    $ 35,255

Interest expense-long term borrowings

      69,633        100,353        104,048      65,691      44,031

Preferred stock dividend

      17,369        1,208        0      0      0

Portion of long-term leases representative of the interest factor **

      5,650        6,901        6,812      4,168      2,644
                                    

Fixed charges

    $ 109,128      $ 129,282      $ 140,816    $ 105,838    $ 81,930
                                    

Earnings to fixed charges, excluding interest on deposits

      *        *      $ 1.98    $ 2.02    $ 2.11
                                    

INCLUDING INTEREST ON DEPOSITS:

             

Pre-tax income

    $ (811,112 )    $ (411,432 )    $ 138,213    $ 108,176    $ 90,623

Preferred stock dividend

      (17,369 )      (1,208 )      0      0      0
                                    

Pre-tax income available to common shareholders

      (828,481 )      (412,640 )      138,213      108,176      90,623

Fixed charges

      278,389        363,619        418,430      291,111      173,920
                                    

Earnings

    $ (550,092 )    $ (49,021 )    $ 556,643    $ 399,287    $ 264,543
                                    

Interest expense-short term borrowings

    $ 185,737      $ 255,157      $ 307,570    $ 221,252    $ 127,245

Interest expense-long term borrowings

      69,633        100,353        104,048      65,691      44,031

Preferred stock dividend

      17,369        1,208        0      0      0

Portion of long-term leases representative of the interest factor **

      5,650        6,901        6,812      4,168      2,644
                                    

Fixed charges

    $ 278,389      $ 363,619      $ 418,430    $ 291,111    $ 173,920
                                    

Earnings to fixed charges, including interest on deposits

      *        *      $ 1.33    $ 1.37    $ 1.52
                                    

 

* Earnings to fixed charges and preferred dividends were a deficiency of $828.5 million and $412.6 million for the years ended December 31, 2009 and 2008, respectively.
** The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest.

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