EX-12.0 5 a12312017-ex120.htm EXHIBIT 12.0 Exhibit


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