Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
UNION BANKSHARES CORPORATION
The following table presents the calculation of the earnings to fixed charges:
| For the Nine Months Ended September 30, |
For the Years Ended December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Income before income Taxes |
$ | 16,305 | $ | 21,942 | $ | 26,240 | $ | 35,943 | $ | 35,413 | $ | 24,819 | $ | 22,920 | |||||||
| Fixed charges: |
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| Interest expense on deposits |
$ | 33,096 | $ | 35,977 | $ | 48,234 | $ | 39,729 | $ | 25,908 | $ | 20,029 | $ | 19,873 | |||||||
| Interest expense on federal funds purchased |
378 | 1,000 | 1,224 | 1,256 | 171 | — | — | ||||||||||||||
| Interest expense on short-term borrowings |
3,698 | 4,223 | 6,618 | 4,168 | 1,842 | 697 | 325 | ||||||||||||||
| Interest expense on long-term borrowings |
5,811 | 7,078 | 9,175 | 7,288 | 5,046 | 4,926 | 3,707 | ||||||||||||||
| Total fixed charges |
$ | 42,983 | $ | 48,278 | $ | 65,251 | $ | 52,441 | $ | 32,967 | $ | 25,652 | $ | 23,905 | |||||||
| Ratio of earnings to fixed charges:(1) |
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| Including deposit interest |
1.38 | 1.45 | 1.40 | 1.69 | 2.07 | 1.97 | 1.96 | ||||||||||||||
| Excluding deposit interest |
2.65 | 2.78 | 2.54 | 3.83 | 6.02 | 5.41 | 6.68 | ||||||||||||||
| (1) | Currently, we have no shares of preferred stock outstanding and have not paid any dividends on preferred stock in the periods presented. Therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is not different from the ratio of earnings to fixed charges. |
For purposes of calculating the ratio of earnings to fixed charges, fixed charges are the sum of:
| • | interest cost, including interest on deposits; and |
| • | that portion of rent expense estimated to be representative of the interest factor. |