EX-12.0 5 a12312017-ex120.htm EXHIBIT 12.0
Exhibit 12.0
BANC OF CALIFORNIA, INC.
FIXED CHARGE CALCULATION

|  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Ratio of earnings to fixed charges: |  |  |  |  |  |  |  |  |  |
Excluding interest on deposits |  | 1.87x |  | 5.22x |  | 4.21x |  | 2.14x |  | 1.34x
Including interest on deposits |  | 1.27x |  | 2.53x |  | 2.42x |  | 1.35x |  | 1.12x
Ratio of earnings to combined fixed charges and preferred stock dividends: (1) |  |  |  |  |  |  |  |  |  |
Excluding interest on deposits |  | 0.82x |  | 2.09x |  | 2.30x |  | 1.35x |  | 0.94x
Including interest on deposits |  | 0.91x |  | 1.64x |  | 1.77x |  | 1.15x |  | 0.97x

(1) | The ratios of earnings to fixed charges and preferred stock dividends both excluding and including interest on deposits were less than one-to-one for the years ended December 31, 2017 and 2013. Earnings were insufficient to cover fixed charges by $11.3 million and $800 thousand, respectively, for the years ended December 31, 2017 and 2013.

Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirement

|  | Year Ended December 31,
($ in thousands) |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings: |  |  |  |  |  |  |  |  |  |
1. Income (loss) before income tax |  | $ | 26,893 |  |  | $ | 100,489 |  |  | $ | 69,166 |  |  | $ | 14,695 |  |  | $ | 4,401 |
2. Add: Interest expense |  | 85,000 |  |  | 59,499 |  |  | 42,621 |  |  | 32,862 |  |  | 23,282 |
3. Earnings including interest on deposits |  | 111,893 |  |  | 159,988 |  |  | 111,787 |  |  | 47,557 |  |  | 27,683 |
4. Less: Interest expense on deposits |  | 60,414 |  |  | 40,220 |  |  | 25,783 |  |  | 24,411 |  |  | 16,051 |
5. Earnings excluding interest on deposits |  | $ | 51,479 |  |  | $ | 119,768 |  |  | $ | 86,004 |  |  | $ | 23,146 |  |  | $ | 11,632 |
Fixed charges: |  |  |  |  |  |  |  |  |  |
6. Interest expense (Line 2) |  | $ | 85,000 |  |  | $ | 59,499 |  |  | $ | 42,621 |  |  | $ | 32,862 |  |  | $ | 23,282 |
7. Interest portion on rental expense |  | 2,931 |  |  | 3,680 |  |  | 3,582 |  |  | 2,378 |  |  | 1,434 |
8. Including interest on deposits and capitalized interest |  | 87,931 |  |  | 63,179 |  |  | 46,203 |  |  | 35,240 |  |  | 24,716 |
9. Less interest expense on deposits (Line 4) |  | 60,414 |  |  | 40,220 |  |  | 25,783 |  |  | 24,411 |  |  | 16,051 |
10. Total fixed charges, excluding interest on deposits |  | $ | 27,517 |  |  | $ | 22,959 |  |  | $ | 20,420 |  |  | $ | 10,829 |  |  | $ | 8,665 |
Fixed charges and preferred stock dividends: |  |  |  |  |  |  |  |  |  |
11. Interest expense (Line 2) |  | $ | 85,000 |  |  | $ | 59,499 |  |  | $ | 42,621 |  |  | $ | 32,862 |  |  | $ | 23,282 |
12. Interest portion on rental expense |  | 2,931 |  |  | 3,680 |  |  | 3,582 |  |  | 2,378 |  |  | 1,434 |
13. Preferred stock dividends (1) |  | 35,260 |  |  | 34,334 |  |  | 16,936 |  |  | 6,276 |  |  | 3,767 |
14. Including interest on deposits, capitalized interest and preferred stock dividends |  | 123,191 |  |  | 97,513 |  |  | 63,139 |  |  | 41,516 |  |  | 28,483 |
15. Less interest expense on deposits (Line 4) |  | 60,414 |  |  | 40,220 |  |  | 25,783 |  |  | 24,411 |  |  | 16,051 |
16. Total fixed charges and preferred stock dividends, excluding interest on deposits |  | $ | 62,777 |  |  | $ | 57,293 |  |  | $ | 37,356 |  |  | $ | 17,105 |  |  | $ | 12,432 |
Ratio of earnings to fixed charges: |  |  |  |  |  |  |  |  |  |
Excluding interest on deposits (Line 5 divided by Line 10) |  | 1.87 |  | 5.22 |  | 4.21 |  | 2.14 |  | 1.34
Including interest on deposits (Line 3 divided by Line 8) |  | 1.27 |  | 2.53 |  | 2.42 |  | 1.35 |  | 1.12
Deficiency |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Ratio of earnings to fixed charges and preferred stock dividends: |  |  |  |  |  |  |  |  |  |
Excluding interest on deposits (Line 5 divided by Line 16) |  | 0.82 |  | 2.09 |  | 2.30 |  | 1.35 |  | 0.94
Including interest on deposits (Line 3 divided by Line 14) |  | 0.91 |  | 1.64 |  | 1.77 |  | 1.15 |  | 0.97
Deficiency |  | $ | 11,298 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 800 |

(1) Utilized a 42 percent effective tax rate