STERLING FINANCIAL CORP /WA/ - FORM S-1 - EX-12.3 - STATEMENT OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS - September 24, 2010

Attached files

file filename
S-1 - REGISTRATION STATEMENT ON FORM S-1 - STERLING FINANCIAL CORP /WA/ds1.htm
EX-4.3 - FORM OF SERIES B STOCK CERTIFICATE - STERLING FINANCIAL CORP /WA/dex43.htm
EX-4.7 - FORM OF WARRANT TO PURCHASE SHARES - STERLING FINANCIAL CORP /WA/dex47.htm
EX-4.4 - FORM OF SERIES D PREFERRED STOCK CERTIFICATE - STERLING FINANCIAL CORP /WA/dex44.htm
EX-4.9 - AMENDED AND RESTATED WARRANT TO PURCHASE SHARES - STERLING FINANCIAL CORP /WA/dex49.htm
EX-21.1 - LIST OF SUBSIDIARIES OF STERLING - STERLING FINANCIAL CORP /WA/dex211.htm
EX-12.2 - STATEMENT REGARDING COMPUTATION OF RETURN ON AVERAGE ASSETS - STERLING FINANCIAL CORP /WA/dex122.htm
EX-12.1 - STATEMENT REGARDING COMPUTATION OF RETURN ON AVERAGE COMMON SHAREHOLDERS' EQUITY - STERLING FINANCIAL CORP /WA/dex121.htm
EX-23.2 - CONSENT OF BDO USA, LLP, FORMERLY KNOWN AS BDO SEIDMAN, LLP - STERLING FINANCIAL CORP /WA/dex232.htm
EX-4.8 - FORM OF WARRANT TO PURCHASE SHARES ISSUED TO WARBURG PINCUS PRIVATE EQUITY X, LP - STERLING FINANCIAL CORP /WA/dex48.htm

EXHIBIT 12.3

Ratio of Earnings to Fixed Charges and Preferred Dividends

 

     Six Months
Ended June 30,		     Years Ended December 31,
     2010     2009     2008     2007    2006    2005
     (Dollars in thousands)

EXCLUDING INTEREST ON DEPOSITS:

               

Pre-tax income

    $ (138,119 )    $ (811,112 )    $ (411,432 )    $ 138,213    $ 108,176    $ 90,623

Preferred stock dividend

      (8,881 )      (17,369 )      (1,208 )      0      0      0
                                            

Pre-tax income available to common shareholders

      (147,000 )      (828,481 )      (412,640 )      138,213      108,176      90,623

Fixed charges

      44,724        109,128        129,282        140,816      105,838      81,930
                                            

Earnings

    $ (102,276 )    $ (719,353 )    $ (283,358 )    $ 279,029    $ 214,014    $ 172,553
                                            

Interest expense-short term borrowings

    $ 4,214      $ 16,476      $ 20,820      $ 29,956    $ 35,979    $ 35,255

Interest expense-long term borrowings

      29,988        69,633        100,353        104,048      65,691      44,031

Preferred stock dividend

      8,881        17,369        1,208        0      0      0

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

      1,641        5,650        6,901        6,812      4,168      2,644
                                            

Fixed charges

    $ 44,724      $ 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

    $ (138,119 )    $ (811,112 )    $ (411,432 )    $ 138,213    $ 108,176    $ 90,623

Preferred stock dividend

      (8,881 )      (17,369 )      (1,208 )      0      0      0
                                            

Pre-tax income available to common shareholders

      (147,000 )      (828,481 )      (412,640 )      138,213      108,176      90,623

Fixed charges

      97,238        278,389        363,619        418,430      291,111      173,920
                                            

Earnings

    $ (49,762 )    $ (550,092 )    $ (49,021 )    $ 556,643    $ 399,287    $ 264,543
                                            

Interest expense-short term borrowings

    $ 56,728      $ 185,737      $ 255,157      $ 307,570    $ 221,252    $ 127,245

Interest expense-long term borrowings

      29,988        69,633        100,353        104,048      65,691      44,031

Preferred stock dividend

      8,881        17,369        1,208        0      0      0

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

      1,641        5,650        6,901        6,812      4,168      2,644
                                            

Fixed charges

    $ 97,238      $ 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 $147.0 million for the six months ended June 30, 2010, and $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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