EX-12.1 4 g21994exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
POPULAR, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
                                         
    Year Ended December 31,  
    2009 (1)     2008 (1)     2007 (1)     2006 (1)     2005 (1)  
(Loss) income from continuing operations before income taxes and cumulative effect of accounting changes
    ($579,694 )     ($232,959 )   $ 266,909     $ 551,893     $ 665,045  
 
                                       
Fixed charges :
                                       
 
                                       
Interest expense and capitalized
    754,506       994,919       1,246,577       1,200,508       859,075  
 
                                       
Estimated interest component of net rental payments
    28,866       34,975       31,296       25,670       23,755  
 
                                       
Total fixed charges including interest on deposits
    783,372       1,029,894       1,277,873       1,226,178       882,830  
 
                                       
Less: Interest on deposits
    501,262       700,122       765,794       580,094       430,813  
 
                                       
Total fixed charges excluding interest on deposits
    282,110       329,772       512,079       646,084       452,017  
 
                                       
Income before income taxes and fixed charges(including interest on deposits)
  $ 203,678     $ 796,935     $ 1,544,782     $ 1,778,071     $ 1,547,875  
 
                                       
(Loss) income before income taxes and fixed charges(excluding interest on deposits)
    ($297,584 )   $ 96,813     $ 778,988     $ 1,197,977     $ 1,117,062  
 
                                       
Ratio of earnings to fixed charges
                                       
 
                                       
Including Interest on Deposits
    (A )     (A )     1.2       1.5       1.8  
 
                                       
Excluding Interest on Deposits
    (A )     (A )     1.5       1.9       2.5  
 
                                       
Ratio of earnings to fixed charges & Preferred Stock Dividends
                                       
 
                                       
Including Interest on Deposits
    (A )     (A )     1.2       1.4       1.7  
 
                                       
Excluding Interest on Deposits
    (A )     (A )     1.5       1.8       2.4  
 
(1)     On November 3, 2008, the Corporation sold residual interests and servicing related assets of Popular Financial Holding (“PFH”) and Popular, FS to Goldman Sachs Mortgage Company, Goldman, Sachs & Co. and Litton Loan Servicing, LP. In addition, on September 18, 2008, the Corporation announced the consummation of the sale of manufactured housing loans of PFH to 21st Mortgage Corp. and Vanderbilt Mortgage and Finance, Inc. The above transactions and past sales and restructuring plans executed at PFH in the past two years have resulted in the discontinuance of the Corporation’s PFH operations anf PFH’s results are reflected as such in the Corporation’s Consolidated Statement of Operations. The computation of earnings to fixed charges and preferred stock dividends excludes discontinued operations. Prior periods have been retrospectively adjusted on a comparable basis.
 
(A)   During 2008 and 2009, earnings were not sufficient to cover fixed charges or preferred dividends and the ratios were less than 1:1. The Corporation would have had to generate additional earnings of approximately $235 million and $625 million to achieve ratios of 1:1 in 2008 and 2009, respectively.