Exhibit 12.1

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

AND PREFERRED DIVIDENDS

UNION BANKSHARES CORPORATION

The following table presents the calculation of the consolidated ratios of (i) earnings to fixed charges and (ii) earnings to fixed charges and preferred stock dividends for the periods presented:

 

     For the Six Months
Ended June 30,		      For the Years Ended December 31,  
     2014      2013      2013      2012      2011      2010      2009  

Income before income taxes

    $ 29,621       $ 25,457       $ 47,009       $ 49,744       $ 41,709       $ 31,505       $ 9,250   

Fixed charges:

                     

Interest expense on deposits

    $ 4,806       $ 7,663       $ 14,097       $ 19,446       $ 24,346       $ 30,742       $ 39,451   

Interest expense on federal funds purchased

      46         36         89         50         7         33         27   

Interest expense on short-term borrowings

      265         108         265         234         352         1,790         2,261   

Interest expense on long-term borrowings

      4,252         3,009         6,050         7,778         8,008         5,680         7,032   

Portion of rent expense that represents an estimated interest factor

      1,310         896         1,906         1,976         1,625         1,719         725   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges

      10,679         11,712         22,407         29,484         34,338         39,964         49,496   

Preferred stock dividends

      —           —           —           —           1,499         1,688         2,696   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges and preferred stock dividends

    $ 10,679       $ 11,712       $ 22,407       $ 29,484       $ 35,837       $ 41,652       $ 52,192   

Ratios of earnings to fixed charges (1):

                     

Including deposit interest

      3.77         3.17         3.10         2.69         2.21         1.79         1.19   

Excluding deposit interest

      6.04         7.29         6.66         5.96         5.17         4.42         1.92   

Ratios of earnings to fixed charges and preferred dividends (1)(2)(3):

                     

Including deposit interest

      3.77         3.17         3.10         2.69         2.16         1.76         1.18   

Excluding deposit interest

      6.04         7.29         6.66         5.96         4.63         3.89         1.73   

 

(1) For purposes of calculating the ratio of earnings to fixed charges, fixed charges is the sum of (i) interest cost, including interest on deposits; and (ii) that portion of rent expense estimated to be representative of the interest factor.
(2) For purposes of calculating the ratio of earnings to fixed charges and preferred stock dividends, we divide earnings by the sum of fixed charges and preferred stock dividends.
(3) On December 19, 2008, we issued to the U.S. Department of the Treasury (the “Treasury”) 59,000 shares of the company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”) for $59 million. The issuance was made pursuant to the Treasury’s Capital Purchase Program under the Troubled Asset Relief Program (the “CPP”). In November 2009, the company redeemed all shares of the Series A Preferred Stock. On February 1, 2010, the company issued a series of preferred stock as a result of its acquisition of First Market Bank, FSB (“FMB”). On February 6, 2009, FMB issued and sold to the Treasury, pursuant to the CPP, 33,900 shares of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B and a warrant to purchase up to 1,695 shares of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C. The Treasury immediately exercised the warrant for the entire 1,695 shares of FMB’s Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C. In connection with the acquisition of FMB, the company established a series of preferred stock with substantially identical preferences, rights and limitations to the FMB preferred stock — the company’s Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”). In the acquisition, each share of FMB Series B and Series C preferred stock was exchanged for one share of the company’s Series B Preferred Stock. In December 2011, the company redeemed all shares of the Series B Preferred Stock.