EX-12 2 wfe-2017930xex12.htm EXHIBIT 12 Exhibit


Exhibit (12)
 
Wells Fargo Real Estate Investment Corporation
 
 
 
 
 
 
 
Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends
 
 
 
 
 
 
 
 
 
Quarter ended September 30,
 
 
Nine months ended September 30,
 
(in thousands)
2017

 
2016

 
2017

 
2016

Excluding interest on deposits (1)
 
 
 
 
 
 
 
Income before income taxes
$
326,540

 
191,263

 
903,737

 
485,020

Fixed charges, excluding preferred dividends and capitalized interest
3,173

 
1,272

 
3,423

 
2,029

Earnings
$
329,713

 
192,535

 
907,160

 
487,049

Interest expense
$
3,173

 
1,272

 
3,423

 
2,029

Estimated interest component of net rental expense
—

 
—

 
—

 
—

Preferred dividends
4,397

 
4,397

 
13,191

 
13,191

Capitalized interest
—

 
—

 
—

 
—

Fixed charges and preferred dividends
$
7,570

 
5,669

 
16,614

 
15,220

Ratio of earnings to fixed charges and preferred dividends (2)
43.56

 
33.96

 
54.60

 
32.00

 
 
 
 
 
 
 
 
(1)
As defined in Item 503(d) of Regulation S-K.
(2)
These computations are included herein in compliance with Securities and Exchange Commission regulations. However, management believes that fixed charge ratios are not meaningful measures for the business of Wells Fargo Real Estate Investment Corporation. For example, even if there was no change in net income, the ratios would decline if interest income and interest expense increase by the same amount due to an increase in the level of interest rates or, conversely, they would increase if interest income and interest expense decrease by the same amount due to a decrease in the level of interest rates.