EX-12.1 2 hmstexhibit121q32017ca.htm COMPUTATION OF EARNINGS TO FIXED CHARGES Exhibit
Exhibit 12.1

Calculation of Ratios of Earnings to Fixed Charges
The following tables set forth our ratios or earnings to fixed charges, excluding interest on deposits and earnings to fixed charges, including interest on deposits for the periods indicated. The ratio of earnings to fixed charges was computed by dividing earnings by our fixed charges. For purposes of calculating these ratios, earnings consists of income before income taxes plus fixed charges and distributed income of equity investees less minority interest in pre-tax income of subsidiaries that have not incurred fixed charges. Fixed charges include interest expense, amortization expense and estimated interest component of rental expense.

 
Nine Months Ended September 30,
 
Years Ended December 31,
(Dollars in thousands)
2017
 
2016
 
2016
 
2015
 
2014
 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
Interest expense, excluding deposits
$
13,128

 
$
7,320

 
$
10,479

 
$
4,975

 
$
3,193

 
Amortization of premiums
2,848

 
2,940

 
4,671

 
3,461

 
1,068

 
Estimated interest on rental expense (1)
6,232

 
5,778

 
7,346

 
6,628

 
5,049

 
Preferred stock dividends
—

 
—

 
—

 
—

 
—

 
    Total Fixed Charges
$
22,208

 
$
16,038

 
$
22,496

 
$
15,064

 
$
9,310

 
Earnings
 
 
 
 
 
 
 
 
 
 
Income before income taxes
49,147

 
87,371

 
$
90,777

 
$
56,907

 
$
33,315

 
Add: distributed income of equity investees
902

 
1,827

 
2,753

 
2,512

 
1,306

 
Add: fixed charges
22,208

 
16,038

 
22,496

 
15,064

 
9,310

 
Less: minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
757

 
2,474

 
2,333

 
1,624

 
101

 
     Total earnings
$
71,500

 
$
102,762

 
$
113,693

 
$
72,859

 
$
43,830

 
Ratio of Earnings to fixed charges, excluding interest on deposits
3.22

 
6.41

 
5.05

 
4.84

 
4.71

 
(1) This amount is the portion of rent expense (generally one-third) deemed representative of the interest factor.



Exhibit 12.1

 
Nine Months Ended September 30,
 
Years Ended December 31,
(Dollars in thousands)
2017
 
2016
 
2016
 
2015
 
2014
Fixed Charges
 
 
 
 
 
 
 
 
 
Interest expense, including deposits
$
30,638

 
$
20,700

 
$
29,488

 
$
16,776

 
$
12,624

Amortization of premiums
2,848

 
2,940

 
4,671

 
3,461

 
1,068

Estimated interest on rental expense (1)
6,232

 
5,778

 
7,346

 
6,628

 
5,049

Preferred stock dividends
—

 
—

 
—

 
—

 
—

    Total Fixed Charges
$
39,718

 
$
29,418

 
$
41,505

 
$
26,865

 
$
18,741

Earnings
 
 
 
 
 
 
 
 
 
Income before income taxes
$
49,147

 
$
87,371

 
$
90,777

 
$
56,907

 
$
33,315

Add: distributed income of equity investees
902

 
1,827

 
2,753

 
2,512

 
1,306

Add: fixed charges
39,718

 
29,418

 
41,505

 
26,865

 
18,741

Subtract: minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
757

 
2,474

 
2,333

 
1,624

 
101

     Total earnings
$
89,010

 
$
116,142

 
$
132,702

 
$
84,660

 
$
53,261

Ratio of Earnings to fixed charges, including interest on deposits
2.24

 
3.95

 
3.20

 
3.15

 
2.84

(1) This amount is the portion of rent expense (generally one-third) deemed representative of the interest factor.