EX-12 7 c82382exv12.htm EXHIBIT 12 Exhibit 12
EXHIBIT 12
FINANCIAL INSTITUTIONS, INC.
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
                                         
    Years Ended December 31,  
    2008     2007     2006     2005     2004  
EARNINGS:
                                        
 
                                        
Pre-tax income (loss) from continuing operations
   $ (47,459 )   $ 21,209     $ 23,607     $ 2,852     $ 16,113  
Fixed charges
     36,518       49,153       45,715       37,379       32,694  
 
                              
Earnings, including interest on deposits (a)
   $ (10,941 )   $ 70,362     $ 69,322     $ 40,231     $ 48,807  
 
                              
LESS: Interest on deposits
     29,349       42,714       37,445       30,255       24,624  
 
                              
Earnings, excluding interest on deposits (b)
   $ (40,290 )   $ 27,648     $ 31,877     $ 9,976     $ 24,183  
 
                              
 
                                        
FIXED CHARGES:
                                        
Interest on deposits
   $ 29,349     $ 42,714     $ 37,445     $ 30,255     $ 24,624  
Interest on borrowings
     4,268       4,425       6,159       6,140       6,144  
Amortized premiums, discounts and capitalized expenses related to indebtedness (1)
     —       —       —       —       —  
Estimated interest component of rent expense (2)
     111       97       90       65       65  
Preferred security dividends (3)
     2,790       1,917       2,021       919       1,861  
 
                              
Fixed charges, including interest on deposits (c)
   $ 36,518     $ 49,153     $ 45,715     $ 37,379     $ 32,694  
 
                              
LESS: Interest on deposits
     29,349       42,714       37,445       30,255       24,624  
 
                              
Fixed charges, excluding interest on deposits (d)
   $ 7,169     $ 6,439     $ 8,270     $ 7,124     $ 8,070  
 
                              
 
                                        
Ratio of earnings to combined fixed charges and preferred security dividends:
                                        
Including interest on deposits (a / c)
     *       1.43       1.52       1.08       1.49  
Excluding interest on deposits (b / d)
     *       4.29       3.85       1.40       3.00  
 
     
(1)   Any discount, premium or capitalized expenses on debt are included in interest on borrowings.
 
(2)   Estimated to be approximately 10% of rent expense.
 
(3)   Preferred security dividends are shown on a tax-equivalent basis, computed using the effective income tax rate from continuing operations for each period shown.
 
*   Ratios for this period are less than 1.00. For the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $47.5 million.