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EXHIBIT 12.1
FRANKLIN FINANCIAL CORPORATION
Ratio of Earnings to Fixed Charges
<TABLE>
<CAPTION>
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Three Months Ended
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(including interest on deposits) Proforma March 31, Proforma
2000 2000 1999 1999 1999 1998
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<S> <C> <C> <C> <C> <C> <C>
EARNINGS:
Pretax income $ 1,395,553 $ 1,689,000 $ 1,782,000 $ 5,236,518 $ 6,814,016 $ 7,653,499
Add: Fixed charges from below 5,470,110 5,176,663 3,558,364 17,023,844 15,446,346 13,368,970
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Earnings for fixed charges ratio $ 6,865,663 $ 6,865,663 $ 5,340,364 $ 22,260,362 $ 22,260,362 $ 21,022,469
FIXED CHARGES:
Add: Interest expense 5,385,572 5,098,000 3,500,000 16,739,177 15,185,179 13,141,670
Interest portion of rental expense 78,663 78,663 58,364 261,167 261,167 227,300
Amortization of debt issue costs 5,875 -- -- 23,500 -- --
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Fixed charges 5,470,110 5,176,663 3,558,364 17,023,844 15,446,346 13,368,970
Ratio of earnings to fixed charges 1.26 1.33 1.50 1.31 1.44 1.57
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</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------
Three Months Ended
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(excluding interest on deposits) Proforma March 31, Proforma
2000 2000 1999 1999 1999 1998
--------------------------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS:
Pretax income $ 1,395,553 $ 1,689,000 $ 1,782,000 $ 5,236,518 $ 6,814,016 $ 7,653,499
Add: Fixed charges from below 824,110 530,663 222,364 2,699,963 1,122,465 966,235
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Earnings for fixed charges ratio $ 2,219,663 $ 2,219,663 $ 2,004,364 $ 7,936,481 $ 7,936,481 $ 8,619,734
FIXED CHARGES:
Add: Interest expense 5,385,572 5,098,000 3,500,000 16,739,177 15,185,179 13,141,670
Interest portion of rental expense 78,663 78,663 58,364 261,167 261,167 227,300
Amortization of debt issue costs 5,875 -- -- 23,500 -- --
Less: Deposit interest expense (4,646,000) (4,646,000) (3,336,000) (14,323,881) (14,323,881) (12,402,735)
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Fixed charges 824,110 530,663 222,364 2,699,963 1,122,465 966,235
Ratio of earnings to fixed charges 2.69 4.18 9.01 2.94 7.07 8.92
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</TABLE>
<TABLE>
<CAPTION>
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(including interest on deposits)
1997 1996 1995
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<S> <C> <C> <C>
EARNINGS:
Pretax income $ 6,138,535 $ 4,001,986 $ 1,685,420
Add: Fixed charges from below 11,075,807 7,911,941 6,173,614
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Earnings for fixed charges ratio $ 17,214,342 $ 11,913,927 $ 7,859,034
FIXED CHARGES:
Add: Interest expense 10,896,136 7,730,585 6,023,491
Interest portion of rental expense 179,671 181,356 150,123
Amortization of debt issue costs -- -- --
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Fixed charges 11,075,807 7,911,941 6,173,614
Ratio of earnings to fixed charges 1.55 1.51 1.27
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</TABLE>
<TABLE>
<CAPTION>
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---------------------------------------
(excluding interest on deposits)
1997 1996 1995
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<S> <C> <C> <C>
EARNINGS:
Pretax income $ 6,138,535 $ 4,001,986 $ 1,685,420
Add: Fixed charges from below 670,600 259,063 179,852
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Earnings for fixed charges ratio $ 6,809,135 $ 4,261,049 $ 1,865,272
FIXED CHARGES:
Add: Interest expense 10,896,136 7,730,585 6,023,491
Interest portion of rental expense 179,671 181,356 150,123
Amortization of debt issue costs -- -- --
Less: Deposit interest expense (10,405,207) (7,652,878) (5,993,762)
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Fixed charges 670,600 259,063 179,852
Ratio of earnings to fixed charges 10.15 16.45 10.37
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</TABLE>
For purposes of computing the ratios of earnings to fixed charges, earnings
represent income from continuing operations before income taxes, extraordinary
items and cumulative effect of changes in accounting principle plus fixed
charges. Fixed charges represent total interest expense, including and excluding
interest on deposits, as applicable, amortization of deferred financing costs
and the interest component of interest expense believed by the Company to be
representative of the interest factor thereon.
