EX-12 2 ex-1293014.htm EXHIBIT EX-12 9.30.14


Exhibit 12



Ratios of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends

Our ratios of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends are calculated in accordance with SEC requirements and computed by dividing earnings by fixed charges and earnings by preferred stock dividend requirements. For purposes of computing these ratios, earnings consist of net income before extraordinary items plus applicable income taxes and fixed charges. Fixed charges, excluding interest on deposits, consist of interest expense on borrowings and one-third of our rental expense, which we deem to represent interest. Preferred share dividend requirements represent the amount of pre-tax income required to pay the dividends on preferred shares. We issued Noncumulative Perpetual Preferred Stock, Series B, par value $0.01 per share, on December 14, 2011, but did not declare any dividends in 2011. Therefore, the ratio of earnings to combined fixed charges and preferred share dividends is identical to the ratio of earnings to fixed charges for the years ended December 31, 2011 and 2010. Our consolidated ratios for the periods indicated are as follows (amounts in millions):
 
Nine months ended September 30,
 
Years ended December 31,
 
2014
2013
 
2013
2012
2011
2010
2009
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
(Loss) income before taxes
$
(910
)
$
312

 
$
423

$
239

$
262

$
212

$
120

Fixed charges
98

95

 
128

162

195

154

129

Earnings, including interest on deposits
(811
)
408

 
550

401

458

366

249

Less interest on deposits
39

40

 
53

67

83

71

74

(Loss) earnings, excluding interest on deposits
$
(850
)
$
368

 
$
497

$
335

$
374

$
295

$
175

 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
Interest on deposits
$
39

$
40

 
$
53

$
67

$
83

$
71

$
74

Interest on borrowings
51

47

 
64

86

101

77

53

Estimated interest component of rent expense
8

8

 
11

9

11

6

2

Fixed charges, including interest on deposits
98

95

 
128

162

195

154

129

Less interest on deposits
39

40

 
53

67

83

71

74

Fixed charges, excluding interest on deposits
59

55

 
75

95

112

83

55

Preferred stock dividend requirements
36

37

 
49

45

—

—

20

Combined fixed charges and preferred stock dividend requirements
$
96

$
92

 
$
124

$
140

$
112

$
83

$
75

 
 
 
 
 
 
 
 
 
Ratio of (loss) earnings to fixed charges:
 
 
 
 
 
 
 
 
Excluding interest on deposits
(14.35
)
6.65

 
6.67

3.51

3.34

3.57

3.18

Including interest on deposits
(8.26
)
4.27

 
4.31

2.48

2.34

2.38

1.93

 
 
 
 
 
 
 
 
 
Ratio of (loss) earnings to combined fixed charges and preferred stock dividend requirements:
 
 
 
 
 
 
 
 
Excluding interest on deposits
(9.26
)
3.59

 
3.63

2.06

3.34

3.57

2.06

Including interest on deposits
(6.29
)
2.81

 
2.84

1.72

2.34

2.38

1.54



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