STERLING FINANCIAL CORP /WA/ - FORM S-1/A - EX-12.3 - STATEMENT OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS - November 3, 2010

Attached files

file filename
S-1/A - PRE-EFFECTIVE AMENDMENT NO. 1 TO FORM S-1 - STERLING FINANCIAL CORP /WA/ds1a.htm
EX-3.7 - ARTICLES OF AMENDMENT TO STERLING'S RESTATED ARTICLES OF INCORPORATION - STERLING FINANCIAL CORP /WA/dex37.htm
EX-12.1 - STATEMENT REGARDING COMPUTATION OF RETURN ON AVERAGE COMMON SHAREHOLDER'S EQUITY - STERLING FINANCIAL CORP /WA/dex121.htm
EX-12.2 - STATEMENT REGARDING COMPUTATION OF RETURN ON AVERAGE ASSETS - STERLING FINANCIAL CORP /WA/dex122.htm
EX-23.2 - CONSENT OF BDO USA, LLP, FORMERLY KNOWN AS BDO SEIDMAN, LLP - STERLING FINANCIAL CORP /WA/dex232.htm
EX-21.1 - LIST OF SUBSIDIARIES OF STERLING - STERLING FINANCIAL CORP /WA/dex211.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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