EXHIBIT 12.1
Nara Bancorp, Inc.
Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends
| Six Months Ended June 30, 2009 |
Year Ended December 31, | |||||||||||||||||||||||||
| (Dollars in thousands) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||||
| EXCLUDING INTEREST ON DEPOSITS: |
||||||||||||||||||||||||||
| Pre-tax income (loss) from continuing operations, as reported |
$ | (16,891 | ) | $ | 4,380 | $ | 55,798 | $ | 56,203 | $ | 45,668 | $ | 33,239 | |||||||||||||
| Fixed charges |
8,661 | 18,709 | 12,666 | 7,494 | 6,645 | 4,656 | ||||||||||||||||||||
| Earnings (loss) |
(A) | $ | (8,230 | ) | $ | 23,089 | $ | 68,464 | $ | 63,697 | $ | 52,313 | $ | 37,895 | ||||||||||||
| Interest on borrowings |
$ | 6,499 | $ | 13,932 | $ | 6,988 | $ | 2,311 | $ | 2,090 | $ | 833 | ||||||||||||||
| Interest on long-term debt, including amortization of debt issuance costs |
1,099 | 2,845 | 3,750 | 3,389 | 2,901 | 2,380 | ||||||||||||||||||||
| Portion of long-term lease expense representative of the interest factor (1) |
1,063 | 1,932 | 1,928 | 1,794 | 1,654 | 1,443 | ||||||||||||||||||||
| Fixed Charges |
$ | 8,661 | $ | 18,709 | $ | 12,666 | $ | 7,494 | $ | 6,645 | $ | 4,656 | ||||||||||||||
| Preferred stock dividend requirements and discount accretion |
3,541 | 693 | — | — | — | — | ||||||||||||||||||||
| Combined fixed charges and preferred stock dividend requirements and discount accretion |
(B) | $ | 12,202 | $ | 19,402 | $ | 12,666 | $ | 7,494 | $ | 6,645 | $ | 4,656 | |||||||||||||
| Ratios of earnings (loss) to combined fixed charges and preferred stock dividend requirements and discount accretion, excluding interest on deposits (2) |
(A)/(B) | — | 1.19 | x | 5.41 | x | 8.50 | x | 7.87 | x | 8.14 | x | ||||||||||||||
| INCLUDING INTEREST ON DEPOSITS: |
||||||||||||||||||||||||||
| Pre-tax income (loss) from continuing operations, as reported |
$ | (16,891 | ) | $ | 4,380 | $ | 55,798 | $ | 56,203 | $ | 45,668 | $ | 33,239 | |||||||||||||
| Fixed charges |
33,851 | 72,789 | 80,913 | 63,051 | 39,343 | 20,167 | ||||||||||||||||||||
| Earnings (loss) |
(C) | $ | 16,960 | $ | 77,169 | $ | 136,711 | $ | 119,254 | $ | 85,011 | $ | 53,406 | |||||||||||||
| Interest on borrowings and deposits |
$ | 31,689 | $ | 68,012 | $ | 75,235 | $ | 57,868 | $ | 34,788 | $ | 16,344 | ||||||||||||||
| Interest on long-term debt, including amortization of debt issuance costs |
1,099 | 2,845 | 3,750 | 3,389 | 2,901 | 2,380 | ||||||||||||||||||||
| Portion of long-term lease expense representative of the interest factor (1) |
1,063 | 1,932 | 1,928 | 1,794 | 1,654 | 1,443 | ||||||||||||||||||||
| Fixed Charges |
$ | 33,851 | $ | 72,789 | $ | 80,913 | $ | 63,051 | $ | 39,343 | $ | 20,167 | ||||||||||||||
| Preferred stock dividend requirements and discount accretion |
3,541 | 693 | — | — | — | — | ||||||||||||||||||||
| Combined fixed charges and preferred stock dividend requirements and discount accretion |
(D) | $ | 37,392 | $ | 73,482 | $ | 80,913 | $ | 63,051 | $ | 39,343 | $ | 20,167 | |||||||||||||
| Ratios of earnings (loss) to combined fixed charges and preferred stock dividend requirements and discount accretion, including interest on deposits |
(C)/(D) | 0.45 | x | 1.05 | x | 1.69 | x | 1.89 | x | 2.16 | x | 2.65 | x | |||||||||||||
| (1) | The interest factor is estimated to be one-third of long-term lease expense. |
| (2) | Combined fixed charges and preferred stock dividend requirements and discount accretion, excluding interest on deposits, exceeded earnings by $20.4 million for the six months ended June 30, 2009. |