##### Table of Contents

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-Q



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|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended June 30, 2006



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to

Commission File No. 1-14473



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LOGO

Sky Financial Group, Inc.

(Exact Name of Registrant as Specified in its Charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Ohio                                                           |  | 34-1372535                          
|(State or Other Jurisdiction of Incorporation or Organization) |  | (IRS Employer Identification Number)



|                                             |  |           
|-------------------------------------------- |  | ----------
|221 South Church Street, Bowling Green, Ohio |  | 43402     
|(Address of Principal Executive Offices)     |  | (Zip Code)

(419) 327-6300

(Registrants Telephone Number)



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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    Yes  x    No ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of
accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  x    Accelerated filer ̈Non-accelerated
filer ̈

Indicate by
check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ̈No  x

The number of shares outstanding of the
Registrants common stock, without par value, was 108,828,275 at July 21, 2006.



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##### Table of Contents

SKY FINANCIAL GROUP, INC.

INDEX



|                              |  |                                                                                              |  |           
|----------------------------- |  | -------------------------------------------------------------------------------------------- |  | ----------
|                              |  |                                                                                              |  | PageNumber
|PART I. FINANCIAL INFORMATION |  |                                                                                             
|                              |  |                                                                                             
|Item 1.                       |  | Financial Statements (Unaudited)                                                             |  |           
|                              |  |                                                                                             
|                              |  | Condensed Consolidated Balance SheetsJune 30, 2006 and December 31, 2005                     |  | 3         
|                              |  |                                                                                             
|                              |  | Condensed Consolidated Statements of IncomeThree and six months ended June 30, 2006 and 2005 |  | 4         
|                              |  |                                                                                             
|                              |  | Condensed Consolidated Statements of Changes in Shareholders Equity                         |  |           
|                              |  | Three and six months ended June 30, 2006 and 2005                                            |  | 5         
|                              |  |                                                                                             
|                              |  | Condensed Consolidated Statements of Cash Flows Six months ended June 30, 2006 and 2005      |  | 6         
|                              |  |                                                                                             
|                              |  | Notes to Condensed Consolidated Financial Information                                        |  | 7         
|                              |  |                                                                                             
|Item 2.                       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations        |  | 21        
|                              |  |                                                                                             
|Item 3.                       |  | Quantitative and Qualitative Disclosures About Market Risk                                   |  | 34        
|                              |  |                                                                                             
|Item 4.                       |  | Controls and Procedures                                                                      |  | 35        
|                              | 
|PART II.
OTHER INFORMATION    |  |                                                                                             
|                              |  |                                                                                             
|Item 1.                       |  | Legal Proceedings                                                                            |  | 36        
|                              |  |                                                                                             
|Item 1A.                      |  | Risk Factors                                                                                 |  | 37        
|                              |  |                                                                                             
|Item 2.                       |  | Unregistered Sales of Equity Securities and Use of Proceeds                                  |  | 37        
|                              |  |                                                                                             
|Item 3.                       |  | Defaults Upon Senior Securities                                                              |  | 37        
|                              |  |                                                                                             
|Item 4.                       |  | Submission of Matters to a Vote of Security Holders                                          |  | 38        
|                              |  |                                                                                             
|Item 5.                       |  | Other Information                                                                            |  | 38        
|                              |  |                                                                                             
|Item 6.                       |  | Exhibits                                                                                     |  | 38        
|                              | 
|SIGNATURES                    |  | 39                                                                                          
|                              | 
|EXHIBIT INDEX                 |  | 40                                                                                          



2



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##### Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

SKY FINANCIAL GROUP, INC.

Condensed Consolidated Balance Sheets (Unaudited)



|                                                                                                          |  |               |            |   |                  |   |            |  
|--------------------------------------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---------------- | - | ---------- | -
|(Dollars and shares in thousands)                                                                         |  | June 30, 2006 |            |   | December 31,2005 |  
|Assets                                                                                                    |  |               |            |   |                  |   |            |  
|Cash and due from banks                                                                                   |  | $             | 293,266    |   |                  | $ | 318,114    |  
|Interest-earning deposits with financial institutions                                                     |  |               | 13,226     |   |                  |   | 15,037     |  
|Loans held for sale                                                                                       |  |               | 22,296     |   |                  |   | 24,184     |  
|Securities available for sale                                                                             |  |               | 3,084,312  |   |                  |   | 3,097,472  |  
|                                                                                                          |  |              
|Total loans                                                                                               |  |               | 11,218,034 |   |                  |   | 11,149,222 |  
|Less allowance for loan and lease losses                                                                  |  |               | (144,601   | ) |                  |   | (144,461   | )
|                                                                                                          |  |               |            |   |                  |   |            |  
|Net loans                                                                                                 |  |               | 11,073,433 |   |                  |   | 11,004,761 |  
|                                                                                                          |  |              
|Premises and equipment, net                                                                               |  |               | 166,551    |   |                  |   | 166,797    |  
|Goodwill                                                                                                  |  |               | 524,144    |   |                  |   | 521,862    |  
|Core deposits and other intangibles, net                                                                  |  |               | 59,804     |   |                  |   | 67,077     |  
|Accrued interest receivable and other assets                                                              |  |               | 513,970    |   |                  |   | 467,987    |  
|                                                                                                          |  |               |            |   |                  |   |            |  
|Total assets                                                                                              |  | $             | 15,751,002 |   |                  | $ | 15,683,291 |  
|                                                                                                          |  |               |            |   |                  |   |            |  
|Liabilities                                                                                               |  |               |            |   |                  |   |            |  
|Deposits                                                                                                  |  |               |            |   |                  |   |            |  
|Non-interest bearing deposits                                                                             |  | $             | 1,698,585  |   |                  | $ | 1,734,113  |  
|Interest-bearing deposits                                                                                 |  |               | 9,393,136  |   |                  |   | 9,021,563  |  
|                                                                                                          |  |               |            |   |                  |   |            |  
|Total deposits                                                                                            |  |               | 11,091,721 |   |                  |   | 10,755,676 |  
|Securities sold under repurchase agreements and federal funds purchased                                   |  |               | 883,403    |   |                  |   | 1,053,244  |  
|Debt and Federal Home Loan Bank advances                                                                  |  |               | 1,673,602  |   |                  |   | 1,940,989  |  
|Junior subordinated debentures owed to unconsolidated subsidiary trusts                                   |  |               | 337,156    |   |                  |   | 184,799    |  
|Accrued interest payable and other liabilities                                                            |  |               | 190,607    |   |                  |   | 194,706    |  
|                                                                                                          |  |               |            |   |                  |   |            |  
|Total liabilities                                                                                         |  |               | 14,176,489 |   |                  |   | 14,129,414 |  
|                                                                                                          |  |               |            |   |                  |   |            |  
|Shareholders Equity                                                                                      |  |               |            |   |                  |   |            |  
|Serial preferred stock, $10.00 par value; 10,000 shares authorized; none issued                           |  |               |           |   |                  |   |           |  
|Common stock, no par value; 350,000 shares authorized; 110,528 and 110,207 shares issued in 2006 and 2005 |  |               | 1,228,834  |   |                  |   | 1,221,571  |  
|Retained earnings                                                                                         |  |               | 477,122    |   |                  |   | 430,710    |  
|Treasury stock; 1,745 and 1,899 shares in 2006 and 2005                                                   |  |               | (47,218    | ) |                  |   | (51,418    | )
|Accumulated other comprehensive loss                                                                      |  |               | (84,225    | ) |                  |   | (46,986    | )
|                                                                                                          |  |               |            |   |                  |   |            |  
|Total shareholders equity                                                                                |  |               | 1,574,513  |   |                  |   | 1,553,877  |  
|                                                                                                          |  |               |            |   |                  |   |            |  
|Total liabilities and shareholders equity                                                                |  | $             | 15,751,002 |   |                  | $ | 15,683,291 |  
|                                                                                                          |  |               |            |   |                  |   |            |  

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.



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##### Table of Contents

SKY FINANCIAL GROUP, INC.

Condensed Consolidated Statements of Income (Unaudited)



|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|-------------------------------------------------------- | ---- | -------------------------- | ------- | ------------------------ |  | ---- | ------- |  | ---- | ------- | - |  | - | -------
|(Dollars and shares in thousands, except per share
data) |      | Three Months EndedJune 30, |         | Six Months EndedJune 30,
|                                                         | 2006 |                            |         | 2005                     |  | 2006 |         |  | 2005
|Interest Income                                          |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Loans, including fees                                    |      | $                          | 205,998 |                          |  | $    | 169,417 |  | $    | 404,050 |   |  | $ | 328,122
|Securities                                               |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Taxable                                                  |      |                            | 36,837  |                          |  |      | 33,374  |  |      | 72,491  |   |  |   | 66,043 
|Non-taxable                                              |      |                            | 70      |                          |  |      | 63      |  |      | 123     |   |  |   | 115    
|Federal funds sold and other                             |      |                            | 241     |                          |  |      | 175     |  |      | 526     |   |  |   | 343    
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Total interest income                                    |      |                            | 243,146 |                          |  |      | 203,029 |  |      | 477,190 |   |  |   | 394,623
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Interest Expense                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Deposits                                                 |      |                            | 74,850  |                          |  |      | 48,667  |  |      | 141,040 |   |  |   | 92,970 
|Borrowed funds                                           |      |                            | 35,076  |                          |  |      | 26,362  |  |      | 70,094  |   |  |   | 49,646 
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Total interest expense                                   |      |                            | 109,926 |                          |  |      | 75,029  |  |      | 211,134 |   |  |   | 142,616
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Net Interest Income                                      |      |                            | 133,220 |                          |  |      | 128,000 |  |      | 266,056 |   |  |   | 252,007
|Provision for Credit Losses                              |      |                            | 9,476   |                          |  |      | 5,894   |  |      | 16,630  |   |  |   | 36,717 
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Net interest income after provision for credit losses    |      |                            | 123,744 |                          |  |      | 122,106 |  |      | 249,426 |   |  |   | 215,290
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Non-Interest Income                                      |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Brokerage and insurance commissions                      |      |                            | 15,880  |                          |  |      | 14,127  |  |      | 35,672  |   |  |   | 30,758 
|Service charges and fees on deposit accounts             |      |                            | 15,026  |                          |  |      | 14,033  |  |      | 28,525  |   |  |   | 26,205 
|Trust services income                                    |      |                            | 6,012   |                          |  |      | 5,395   |  |      | 11,893  |   |  |   | 10,809 
|Mortgage banking income                                  |      |                            | 6,518   |                          |  |      | 5,923   |  |      | 12,081  |   |  |   | 11,679 
|Net securities gains (losses)                            |      |                            | (80     | )                        |  |      | 1,084   |  |      | (85     | ) |  |   | 1,962  
|Derivative gains (losses) on swaps                       |      |                            | (9,930  | )                        |  |      |         |  |      | (9,930  | ) |  |   |        
|Net cash settlements on swaps                            |      |                            | (199    | )                        |  |      |         |  |      | (199    | ) |  |   |        
|Other income                                             |      |                            | 12,728  |                          |  |      | 10,954  |  |      | 24,657  |   |  |   | 21,575 
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Total non-interest income                                |      |                            | 45,955  |                          |  |      | 51,516  |  |      | 102,614 |   |  |   | 102,988
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Non-Interest Expense                                     |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Salaries and employee benefits                           |      |                            | 55,805  |                          |  |      | 54,679  |  |      | 115,619 |   |  |   | 108,184
|Occupancy and equipment expense                          |      |                            | 17,134  |                          |  |      | 16,835  |  |      | 34,777  |   |  |   | 34,439 
|Merger, integration and restructuring expense            |      |                            | 364     |                          |  |      | 1,031   |  |      | 544     |   |  |   | 1,031  
|Amortization expense                                     |      |                            | 3,808   |                          |  |      | 3,610   |  |      | 7,685   |   |  |   | 7,164  
|Other operating expense                                  |      |                            | 24,810  |                          |  |      | 25,898  |  |      | 49,474  |   |  |   | 50,675 
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Total non-interest expense                               |      |                            | 101,921 |                          |  |      | 102,053 |  |      | 208,099 |   |  |   | 201,493
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Income Before Income Taxes                               |      |                            | 67,778  |                          |  |      | 71,569  |  |      | 143,941 |   |  |   | 116,785
|Income Taxes                                             |      |                            | 22,705  |                          |  |      | 23,783  |  |      | 48,228  |   |  |   | 38,280 
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Net Income                                               |      | $                          | 45,073  |                          |  | $    | 47,786  |  | $    | 95,713  |   |  | $ | 78,505 
|                                                         |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Earnings per Common Share                                |      |                            |         |                          |  |      |         |  |      |         |   |  |   |        
|Basic                                                    |      |                            | 0.42    |                          |  |      | 0.45    |  |      | 0.88    |   |  |   | 0.74   
|Diluted                                                  |      |                            | 0.41    |                          |  |      | 0.45    |  |      | 0.88    |   |  |   | 0.73   

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.



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##### Table of Contents

SKY FINANCIAL GROUP, INC.

(Unaudited)

Condensed Consolidated Statements of Changes in Shareholders Equity



|                                                      |      |                            |           |      |                           |   |           |   |  |      |           |   |  |   |           |  
|----------------------------------------------------- | ---- | -------------------------- | --------- | ---- | ------------------------- | - | --------- | - |  | ---- | --------- | - |  | - | --------- | -
|(Dollars in thousands, except per share
data)         |      | Three Months EndedJune 30, |           |      | Six Months Ended June 30, |  
|                                                      | 2006 |                            |           | 2005 |                           |   | 2006      |   |  | 2005 |          
|Balance at beginning of period                        |      | $                          | 1,566,571 |      |                           | $ | 1,407,180 |   |  | $    | 1,553,877 |   |  | $ | 1,470,955 |  
|                                                      |      |                            |           |     
|Comprehensive income                                  |      |                            |           |      |                           |   |           |   |  |      |           |   |  |   |           |  
|Net income                                            |      |                            | 45,073    |      |                           |   | 47,786    |   |  |      | 95,713    |   |  |   | 78,505    |  
|Other comprehensive income (loss)                     |      |                            | (15,844   | )    |                           |   | 23,043    |   |  |      | (37,239   | ) |  |   | (9,552    | )
|                                                      |      |                            |           |      |                           |   |           |   |  |      |           |   |  |   |           |  
|Total comprehensive income                            |      |                            | 29,229    |      |                           |   | 70,829    |   |  |      | 58,474    |   |  |   | 68,953    |  
|                                                      |      |                            |           |      |                           |   |           |   |  |      |           |   |  |   |           |  
|Common cash dividends                                 |      |                            | (25,023   | )    |                           |   | (23,166   | ) |  |      | (50,032   | ) |  |   | (46,496   | )
|Shares issued for stock option exercises              |      |                            | 1,592     |      |                           |   | 5,310     |   |  |      | 5,378     |   |  |   | 7,541     |  
|Stock based compensation expense                      |      |                            | 1,413     |      |                           |   | 1,469     |   |  |      | 4,308     |   |  |   | 2,717     |  
|Treasury shares repurchased                           |      |                            |          |      |                           |   | (14,622   | ) |  |      |          |   |  |   | (52,407   | )
|Common shares issued to acquire Peter B. Burke Agency |      |                            |          |      |                           |   |          |   |  |      | 1,777     |   |  |   |          |  
|Common shares issued to acquire Belmont Bancorp       |      |                            |          |      |                           |   | 49,609    |   |  |      |          |   |  |   | 49,609    |  
|Common shares issued to acquire EOB, Inc.             |      |                            |          |      |                           |   | 336       |   |  |      |          |   |  |   | 336       |  
|Other items                                           |      |                            | 731       |      |                           |   | 254       |   |  |      | 731       |   |  |   | (4,009    | )
|                                                      |      |                            |           |      |                           |   |           |   |  |      |           |   |  |   |           |  
|Balance at end of period                              |      | $                          | 1,574,513 |      |                           | $ | 1,497,199 |   |  | $    | 1,574,513 |   |  | $ | 1,497,199 |  
|                                                      |      |                            |           |      |                           |   |           |   |  |      |           |   |  |   |           |  
|Common cash dividend per share                        |      | $                          | .23       |      |                           | $ | .22       |   |  | $    | .46       |   |  | $ | .44       |  
|                                                      |      |                            |           |      |                           |   |           |   |  |      |           |   |  |   |           |  

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.



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SKY FINANCIAL GROUP, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)



|                                                                               |  |                          |          |   |      |   |          |  
|------------------------------------------------------------------------------ |  | ------------------------ | -------- | - | ---- | - | -------- | -
|                                                                               |  | Six Months EndedJune 30, |         
|(Dollars in thousands, except share data)                                      |  | 2006                     |          |   | 2005 |  
|Operating Activities                                                           |  |                          |          |   |      |   |          |  
|Net cash provided from operations                                              |  | $                        | 111,455  |   |      | $ | 109,005  |  
|                                                                               |  |                         
|Investing Activities                                                           |  |                          |          |   |      |   |          |  
|Net decrease in interest bearing deposits in other banks                       |  |                          | 1,811    |   |      |   | 13,674   |  
|Securities available for sale:                                                 |  |                          |          |   |      |   |          |  
|Proceeds from maturities and payments                                          |  |                          | 254,495  |   |      |   | 298,575  |  
|Proceeds from sales                                                            |  |                          | 20,581   |   |      |   | 114,501  |  
|Purchases                                                                      |  |                          | (323,333 | ) |      |   | (298,933 | )
|Proceeds from sales of non-mortgage loans                                      |  |                          | 121,245  |   |      |   | 119,685  |  
|Net (increase) decrease in federal funds sold                                  |  |                          |         |   |      |   | 13,480   |  
|Net increase in loans                                                          |  |                          | (213,907 | ) |      |   | (210,572 | )
|Purchases of premises and equipment                                            |  |                          | (10,880  | ) |      |   | (16,100  | )
|Proceeds from sales of premises and equipment                                  |  |                          | 941      |   |      |   | 1,961    |  
|Proceeds from sales of other real estate                                       |  |                          | 8,606    |   |      |   | 8,743    |  
|Net cash paid for acquisitions                                                 |  |                          | (172     | ) |      |   | (5,301   | )
|                                                                               |  |                          |          |   |      |   |          |  
|Net cash provided from (used for) investing activities                         |  |                          | (140,613 | ) |      |   | 39,713   |  
|                                                                               |  |                          |          |   |      |   |          |  
|Financing Activities                                                           |  |                          |          |   |      |   |          |  
|Net increase in deposit accounts                                               |  |                          | 337,207  |   |      |   | 30,744   |  
|Net decrease in federal funds and repurchase agreements                        |  |                          | (169,338 | ) |      |   | (196,241 | )
|Net increase (decrease) in short-term FHLB advances                            |  |                          | (175,000 | ) |      |   | 200,000  |  
|Proceeds from issuance of debt and long-term FHLB advances                     |  |                          | 214,915  |   |      |   | 85,000   |  
|Repayment of debt and long-term FHLB advances                                  |  |                          | (159,537 | ) |      |   | (125,457 | )
|Cash dividends and cash paid for fractional shares                             |  |                          | (49,918  | ) |      |   | (46,814  | )
|Tax benefits from tax deductions in excess of the compensation cost recognized |  |                          | 603      |   |      |   | 1,415    |  
|Proceeds from issuance of common stock                                         |  |                          | 5,378    |   |      |   | 7,541    |  
|Treasury stock repurchases                                                     |  |                          |         |   |      |   | (52,407  | )
|                                                                               |  |                          |          |   |      |   |          |  
|Net cash provided from (used for) financing activities                         |  |                          | 4,310    |   |      |   | (96,219  | )
|                                                                               |  |                          |          |   |      |   |          |  
|Net increase (decrease) in cash and due from banks                             |  |                          | (24,848  | ) |      |   | 52,499   |  
|Cash and due from banks at beginning of period                                 |  |                          | 318,114  |   |      |   | 232,407  |  
|                                                                               |  |                          |          |   |      |   |          |  
|Cash and due from banks at end of period                                       |  | $                        | 293,266  |   |      | $ | 284,906  |  
|                                                                               |  |                          |          |   |      |   |          |  
|Supplemental Disclosures                                                       |  |                          |          |   |      |   |          |  
|                                                                               |  |                         
|Interest paid                                                                  |  | $                        | 209,698  |   |      | $ | 142,914  |  
|Income taxes paid                                                              |  |                          | 57,833   |   |      |   | 43,058   |  
|Non-cash transactions                                                          |  |                          |          |   |      |   |          |  
|Common shares issued to acquire Peter B. Burke Agency                          |  |                          | 64       |   |      |   |         |  
|Common shares issued to acquire Belmont Bancorp                                |  |                          |         |   |      |   | 49,609   |  
|Common shares issued to acquire EOB, Inc.                                      |  |                          |         |   |      |   | 336      |  

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.



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##### Table of Contents

SKY FINANCIAL GROUP, INC.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(Dollars and shares in thousands, except per share data)

1. Accounting Policies

Sky Financial Group, Inc. (Sky Financial) is a financial holding company headquartered in Bowling Green, Ohio, that
owns and operates Sky Bank which is primarily engaged in the commercial and consumer banking business in Ohio, southern Michigan, western Pennsylvania, northern West Virginia and eastern Indiana. Sky Financial also operates businesses relating to
insurance, trust and other related financial services.

The accounting and reporting policies followed by Sky Financial conform in all material respects to
accounting principles generally accepted in the United States of America (US GAAP) and to general practices within the financial services industry. The preparation of financial statements in conformity with US GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for
credit losses and fair values of financial instruments and mortgage servicing rights are particularly subject to change.

These condensed consolidated
unaudited interim financial statements are prepared without an audit and reflect all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial position of Sky Financial
at June 30, 2006, and its results of operations and cash flows for the periods presented. In accordance with US GAAP for interim financial information, these statements do not include certain information and footnote disclosures required
for complete annual financial statements. Sky Financials Annual Report for the year ended December 31, 2005, contains consolidated financial statements and related notes which should be read in conjunction with the accompanying condensed
consolidated financial statements. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year.

Accounting for Derivative Transactions

During the second quarter 2006, Sky Financial identified immaterial
accounting errors related to certain derivative transactions. Sky Financial evaluated the impact of these errors and concluded that the impact was not material to prior annual and quarterly periods. Accordingly, an adjustment was recorded in the
second quarter to correct the cumulative impact of these errors. See Note 13 for additional information.

Accounting for Stock-Based Compensation

During the fourth quarter of 2005, Sky Financial adopted Statement of Financial Accounting Standards No. 123(R), Share-Based Payment (FAS
123(R)). Sky adopted FAS 123(R) using the modified retrospective method for interim periods and retrospectively adjusted the first three quarters of 2005 using the pro forma expense originally disclosed. See Note 2 for further discussion of stock
based compensation.

New Accounting Pronouncements

In
February 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 155, Accounting for Certain Hybrid Financial Instruments:an amendment of FASB Statements No. 133 and 140 (FAS
155). FAS 155 permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation, clarifies which interest-only strips and principal-only strips are not subject to
the requirements of Statement 133, establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative
requiring bifurcation, clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives, and amends Statement 140 to eliminate the



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prohibition on a qualifying special purpose entity from holding a derivative financial instrument that pertains to a
beneficial interest other than another derivative financial instrument. FAS 155 is effective for all financial instruments acquired or issued after the beginning of an entitys first fiscal year that begins after September 15, 2006. Sky
Financial does not expect the adoption of FAS 155 to have a material effect on the results of operations or the statement of condition.

In March 2006, the
FASB issued Statement of Financial Accounting Standards No. 156, Accounting for Servicing of Financial Assets: an amendment of FASB Statement No. 140 (FAS 140 and FAS 156). FAS 140 establishes, among other things, the accounting for
all separately recognized servicing assets and servicing liabilities. This Statement amends FAS 140 to require that all separately recognized servicing assets and servicing liabilities be initially measured at fair value, if practicable. This
Statement permits, but does not require, the subsequent measurement of separately recognized servicing assets and servicing liabilities at fair value. Under this Statement, an entity can elect subsequent fair value measurement to account for its
separately recognized servicing assets and servicing liabilities. Adoption of this Statement is required as of the beginning of the first fiscal year that begins after September 15, 2006. Upon adoption, Sky Financial will apply the requirements
for recognition and initial measurement of servicing assets and servicing liabilities prospectively to all transactions. Sky Financial will adopt FAS 156 for the fiscal year beginning January 1, 2007 and currently has not determined if it will
adopt FAS 156 using the fair value election.

In July 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48,
Accounting for Uncertainty in Income Taxesan interpretation of FASB Statement No. 109 (FIN 48), which clarifies the accounting for uncertainty in tax positions. This Interpretation requires that Sky Financial recognize in the financial
statements, the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. The provisions of FIN 48 are effective as of the beginning of our 2007 fiscal year, with
the cumulative effect of the change in accounting principle recorded as an adjustment to opening retained earnings. Sky Financial is currently evaluating the impact of adopting FIN 48 on its financial statements.

2. Stock Based Compensation

Sky Financial adopted FAS 123(R) in the
fourth quarter of 2005 using the modified retrospective method for interim periods and retrospectively adjusted the first three quarters of 2005 for stock option expense using the pro forma expense originally disclosed. The compensation cost for the
stock option expense recognized in 2006 was calculated by using the 2006 grants based on the grant dates fair value, estimated in accordance with the provisions of FAS No. 123(R). The 2006 stock option expense for all grants issued prior
to the adoption of FAS 123(R) was based on the grant dates fair value estimated in accordance with the original provisions of FAS No. 123. The compensation cost for the stock option expense recognized in 2005 was calculated for all grants
based on the grant dates fair value, estimated in accordance with the original provisions of FAS No. 123.

The following table illustrates the
total stock compensation expense recorded in salaries and employee benefits expense for the three and six months ended June 30, 2006 and 2005:



|                         |  |                            |       |                          |   |       |  |      |       |  |   |      
|------------------------ |  | -------------------------- | ----- | ------------------------ | - | ----- |  | ---- | ----- |  | - | -----
|                         |  | Three months endedJune 30, |       | Six months endedJune 30,
|                         |  | 2006                       |       | 2005                     |   | 2006  |  | 2005
|Stock option expense     |  | $                          | 788   |                          | $ | 1,060 |  | $    | 2,715 |  | $ | 2,216
|Restricted stock expense |  |                            | 625   |                          |   | 409   |  |      | 1,593 |  |   | 501  
|                         |  |                            |       |                          |   |       |  |      |       |  |   |      
|Total expense            |  | $                          | 1,413 |                          | $ | 1,469 |  | $    | 4,308 |  | $ | 2,717
|                         |  |                            |       |                          |   |       |  |      |       |  |   |      
|Tax benefit              |  | $                          | 495   |                          | $ | 514   |  | $    | 1,508 |  | $ | 951  
|                         |  |                            |       |                          |   |       |  |      |       |  |   |      

In accordance with Sky Financials stock option and restricted shares plans, employee participants that are
55 or older are eligible to retire, which has the effect of immediately vesting all non-vested options and restricted shares. Prior to the adoption of FAS 123(R), Sky Financials accounting policy was to recognize compensation cost over the
contractual vesting period with no acceleration based on retirement age. Compensation cost for all awards granted prior to the adoption of FAS 123(R) will continue to be recognized over the contractual vesting period and any remaining unrecognized
compensation cost will be accelerated when an employee actually retires. Compensation cost for awards granted or modified after the adoption of FAS 123(R) will be recognized over a period to the date employee first becomes eligible for retirement.
In accordance with this change in policy, stock option expense for the three months ended June 30, 2006 and 2005 included expense of $112 and $101, respectively, and for the six months ended June 30, 2006 and 2005 included expense of $224
and $201, respectively, for stock options that were granted to retirement eligible participants prior to the adoption of FAS 123(R) that are continuing to be expensed over the contractual terms of the option.



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3. Critical Accounting Policies

The accounting and reporting policies of Sky Financial are in accordance with accounting principles generally accepted within the United States of America and conform to general practices within the financial services
industry. Accounting and reporting policies for the allowance for credit losses and mortgage servicing rights are deemed critical since they involve the use of estimates and require significant management judgments. Application of assumptions
different than those used by management could result in material changes in Sky Financials financial position or results of operations. Note 1 (Summary of Significant Accounting Policies), note 4 (Loans and Allowance for Credit Losses) and
note 20 (Mortgage Banking Activities), of the 2005 Annual Report and Form 10-K, provide detail with regard to Sky Financials accounting for the allowance for loan losses and for mortgage servicing rights. There have been no significant
changes in the application of accounting policies since December 31, 2005.

4. Mergers, Acquisitions and Divestitures

Community Banking

Union Federal

On February 3, 2006, Sky Financial announced the execution of a definitive agreement to acquire Union Federal Bank of Indianapolis and its parent
company, Waterfield Mortgage Company, Incorporated, Ft. Wayne, Indiana. Sky Financials transaction is for the acquisition of Waterfields retail and commercial banking business conducted primarily through Union Federal Bank, and is
expected to add approximately $2.5 billion in assets upon completion. Under the terms of the agreement, shareholders of Waterfield will be entitled to receive $80.07 in cash plus 4.38 shares of Sky Financial common stock for each Waterfield share,
and Sky Financial will issue 7.5 million shares and pay $136.5 million in cash to complete the transaction. Sky Financial will finance a portion of this acquisition by the issuance of $150 million of trust preferred securities, which were
issued in the second quarter of 2006. The transaction is valued at $330 million and is expected to close in the third quarter of 2006. The exchange is expected to qualify as a tax-free transaction to the Waterfield shareholders. Following the
merger, and upon receipt of all necessary regulatory approvals, Union Federal Bank will be merged with and into Sky Bank.

Falls Bank

On November 29, 2005, Sky Financial completed its acquisition of Falls Bank, an $80 million bank that operates two full-service branches in the Akron, Ohio market.
The aggregate purchase price was approximately $12,271, including direct acquisition costs of $33. The acquisition of Falls Bank expanded Sky Financials community banking business further into the Akron market. Falls Bank shareholders received
350 shares of Sky Financial common stock and cash of $2,348. The total purchase price for Falls Bank has been allocated to the tangible and identifiable intangible assets and liabilities based upon their respective fair values. Such allocations have
not been finalized and as such, the allocation of the purchase consideration included in the accompanying Consolidated Balance Sheet at June 30, 2006, is preliminary.

Belmont Bancorp

On June 1, 2005, Sky Financial completed its acquisition of Belmont Bancorp (Belmont), a $297
million bank holding company headquartered in St. Clairsville, Ohio, and its wholly-owned subsidiary, Belmont National Bank. The aggregate purchase price was approximately $68,450, including direct acquisition costs of $56. Belmonts offices
located in Belmont, Harrison and Tuscarawas counties in Ohio, and Ohio County in West Virginia expanded Sky Financials community banking business further into these markets. Belmont Bancorp shareholders received approximately 1,765 shares of
Sky Financial common stock and cash of $18,705. The total purchase price for Belmont has been allocated to the tangible and identifiable intangible assets and liabilities based upon their respective fair values.



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The following pro forma consolidated results of operations have been prepared as if the acquisitions of Belmont Bancorp
and Falls Bank occurred at the beginning of 2005.



|                                   |  |                                |         |                              |   |        
|---------------------------------- |  | ------------------------------ | ------- | ---------------------------- | - | -------
|                                   |  | Three MonthsEndedJune 30, 2005 |         | Six MonthsEndedJune 30, 2005
|Net interest income                |  | $                              | 129,944 |                              | $ | 256,606
|Net income                         |  |                                | 47,085  |                              |   | 77,641 
|Earnings per common share Basic   |  |                                | 0.44    |                              |   | 0.72   
|Earnings per common share Diluted |  |                                | 0.43    |                              |   | 0.71   

The pro forma results for Belmont include approximately $800 of merger costs recorded by Belmont in the second
quarter of 2005

This pro forma information is not necessarily indicative of the results that actually would have been obtained if the operations had been
combined as of the beginning of the periods presented and is not intended to be a projection of future results.

Financial Service Affiliate Acquisitions

On January 3, 2006, Sky Financial acquired the Peter B. Burke Insurance Agency in Pittsburgh,
Pennsylvania for 64 shares of Sky Financial common stock and $185 in cash.

On October 4, 2005, Sky Financial acquired Becker-McDowell Agency, Inc.
and Steiner Insurance Agency, Inc., both located in Wooster, Ohio. Becker-McDowell was acquired for 222 shares of Sky Financial common stock and $580 in cash. Steiner Insurance Agency was acquired for 111 shares of Sky Financial common stock and
$288 in cash.

On August 1, 2005, Sky completed the acquisition of B.K.M.s Benefit Design Agency of Ohio, Inc., located in Findlay, Ohio for 137
shares of Sky Financial common stock and $661 in cash.

All of the purchases completed in 2005 and 2006 were recorded under the purchase method of
accounting and the results of operations of the acquired businesses are included in Sky Financials operations from the effective dates of the acquisitions. Disclosure of pro forma results of the acquisitions of the financial services
affiliates are immaterial to Sky Financials condensed consolidated financial statements.



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5. Securities

The
unrealized gains and losses and estimated fair values at June 30, 2006 and December 31, 2005 are as follows:



|                                                |  |                     |           |                      |   |                       |  |   |          |  
|----------------------------------------------- |  | ------------------- | --------- | -------------------- | - | --------------------- |  | - | -------- | -
|June 30, 2006                                   |  | EstimatedFair Value |           | GrossUnrealizedGains |   | GrossUnrealizedLosses | 
|U.S. Treasury                                   |  | $                   | 200       |                      | $ | 1                     |  | $ |         |  
|U.S. government agencies and corporations       |  |                     | 189,195   |                      |   |                      |  |   | (6,290   | )
|Obligations of state and political subdivisions |  |                     | 11,739    |                      |   | 31                    |  |   | (51      | )
|Corporate and other securities                  |  |                     | 4,801     |                      |   | 1                     |  |   |         |  
|Mortgage-backed securities                      |  |                     | 2,696,201 |                      |   | 11                    |  |   | (123,148 | )
|                                                |  |                     |           |                      |   |                       |  |   |          |  
|Total debt securities available for sale        |  |                     | 2,902,136 |                      |   | 44                    |  |   | (129,489 | )
|Marketable equity securities available for sale |  |                     | 36,070    |                      |   | 907                   |  |   | (735     | )
|FHLB, FRB and Bankers Bank Stock (1)           |  |                     | 146,106   |                      |   |                      |  |   |         |  
|                                                |  |                     |           |                      |   |                       |  |   |          |  
|Total securities                                |  | $                   | 3,084,312 |                      | $ | 951                   |  | $ | (130,224 | )
|                                                |  |                     |           |                      |   |                       |  |   |          |  



|                                                |  |                     |           |                      |   |                       |  |   |         |  
|----------------------------------------------- |  | ------------------- | --------- | -------------------- | - | --------------------- |  | - | ------- | -
|December 31, 2005                               |  | EstimatedFair Value |           | GrossUnrealizedGains |   | GrossUnrealizedLosses | 
|U.S. Treasury                                   |  | $                   | 301       |                      | $ | 2                     |  | $ |        |  
|U.S. government agencies and corporations       |  |                     | 191,273   |                      |   | 13                    |  |   | (4,077  | )
|Obligations of state and political subdivisions |  |                     | 7,690     |                      |   | 83                    |  |   | (2      | )
|Corporate and other securities                  |  |                     | 24,111    |                      |   | 584                   |  |   | (35     | )
|Mortgage-backed securities                      |  |                     | 2,698,074 |                      |   | 766                   |  |   | (66,007 | )
|                                                |  |                     |           |                      |   |                       |  |   |         |  
|Total debt securities available for sale        |  |                     | 2,921,449 |                      |   | 1,448                 |  |   | (70,121 | )
|Marketable equity securities available for sale |  |                     | 31,459    |                      |   | 748                   |  |   | (1,128  | )
|FHLB, FRB and Bankers Bank Stock (1)           |  |                     | 144,564   |                      |   |                      |  |   |        |  
|                                                |  |                     |           |                      |   |                       |  |   |         |  
|Total securities                                |  | $                   | 3,097,472 |                      | $ | 2,196                 |  | $ | (71,249 | )
|                                                |  |                     |           |                      |   |                       |  |   |         |  

---

|(1) | Certain securities such as FHLB, FRB, and Bankers Bank stock are carried at amortized cost.
|--- | --------------------------------------------------------------------------------------------

6. Loans

The loan portfolios are as follows:



|                                       |  |               |            |                  |   |           
|-------------------------------------- |  | ------------- | ---------- | ---------------- | - | ----------
|                                       |  | June 30, 2006 |            | December 31,2005
|Real estate loans:                     |  |               |            |                  |   |           
|Construction                           |  | $             | 1,094,099  |                  | $ | 1,012,745 
|Residential mortgage                   |  |               | 2,832,129  |                  |   | 2,916,248 
|Non-residential mortgage               |  |               | 3,521,744  |                  |   | 3,488,684 
|Commercial, financial and agricultural |  |               | 3,078,792  |                  |   | 3,024,337 
|Installment and credit card loans      |  |               | 691,270    |                  |   | 707,208   
|                                       |  |               |            |                  |   |           
|Total loans                            |  | $             | 11,218,034 |                  | $ | 11,149,222
|                                       |  |               |            |                  |   |           



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The following table presents the aggregate amounts of non-performing loans on the dates indicated:



|                           |  |              |         |                  |   |        
|-------------------------- |  | ------------ | ------- | ---------------- | - | -------
|                           |  | June 30,2006 |         | December 31,2005
|Non-accrual loans          |  | $            | 124,839 |                  | $ | 119,030
|Restructured loans         |  |              | 45      |                  |   | 479    
|                           |  |              |         |                  |   |        
|Total non-performing loans |  | $            | 124,884 |                  | $ | 119,509
|                           |  |              |         |                  |   |        

Non-accrual loans include $15,438 and $20,400 of loans at June 30, 2006 and December 31, 2005,
respectively, that are secured by surety bonds and the assignment of payment streams from pools of commercial leases for which payment is over 90 days past due. See Note 15 Commitments and Contingencies for additional discussion.

7. Borrowings

Sky Financials debt, Federal Home
Loan Bank (FHLB) advances and junior subordinated debentures owed to unconsolidated subsidiary trusts are comprised of the following:



|                                                                         |  |              |           |                  |   |          
|------------------------------------------------------------------------ |  | ------------ | --------- | ---------------- | - | ---------
|                                                                         |  | June 30,2006 |           | December 31,2005
|Borrowings under FHLB lines of credit                                    |  | $            | 1,508,218 |                  | $ | 1,775,583
|Subordinated note, due April 2013 at 5.35%                               |  |              | 50,000    |                  |   | 50,000   
|Subordinated note, due October 2012 at 6.125%                            |  |              | 65,000    |                  |   | 65,000   
|Subordinated note, due January 2008 at 7.08%                             |  |              | 50,000    |                  |   | 50,000   
|Junior subordinated debentures owed to unconsolidated subsidiary trusts: |  |              |           |                  |   |          
|Due February 2027 at 9.88%                                               |  |              | 25,773    |                  |   | 26,393   
|Due June 2027 at 10.20%                                                  |  |              | 24,451    |                  |   | 24,245   
|Due May 2030 at 9.34%                                                    |  |              | 61,856    |                  |   | 63,502   
|Due December 2031 at 9.00%                                               |  |              | 33,187    |                  |   | 33,374   
|Due April 2033 at 7.40% (variable)                                       |  |              | 6,321     |                  |   | 6,357    
|Due October 2033 at 5.02% (variable)                                     |  |              | 30,928    |                  |   | 30,928   
|Due June 2036 at 6.41% (variable)                                        |  |              | 77,320    |                  |   |         
|Due June 2036 at 6.90% (variable)                                        |  |              | 77,320    |                  |   |         
|Capital lease obligation                                                 |  |              | 300       |                  |   | 302      
|Other items                                                              |  |              | 84        |                  |   | 104      
|                                                                         |  |              |           |                  |   |          
|Total borrowings                                                         |  | $            | 2,010,758 |                  | $ | 2,125,788
|                                                                         |  |              |           |                  |   |          

The amount of junior subordinated debentures owed to unconsolidated subsidiary trusts represent the par value
adjusted for any unamortized discount.



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8. Other Comprehensive Income (Loss)

Other comprehensive income (loss) consisted of the following:



|                                                                  |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|----------------------------------------------------------------- |  | -------------------------- | ------- | - | ------------------------ | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                                                  |  | Three Months EndedJune 30, |         |   | Six Months EndedJune 30, |  
|                                                                  |  | 2006                       |         |   | 2005                     |   |         | 2006 |  |   | 2005    |  
|Securities available for sale:                                    |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|                                                                  |  |                            |         |  
|Unrealized securities gains (losses) arising during period        |  | $                          | (25,919 | ) |                          | $ | 36,725  |      |  | $ | (60,305 | ) |  | $ | (11,640 | )
|Reclassification adjustment for (gains) losses included in income |  |                            | 80      |   |                          |   | (1,084  | )    |  |   | 85      |   |  |   | (1,962  | )
|                                                                  |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|                                                                  |  |                            | (25,839 | ) |                          |   | 35,641  |      |  |   | (60,220 | ) |  |   | (13,602 | )
|                                                                  |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Cash flow hedge derivatives                                       |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Change in fair value of cash flow hedge derivatives               |  |                            | 1,466   |   |                          |   | (211    | )    |  |   | 2,929   |   |  |   | (125    | )
|                                                                  |  |                            |         |  
|Minimum pension liability and other                               |  |                            | (3      | ) |                          |   |        |      |  |   |        |   |  |   | (1,009  | )
|                                                                  |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Other comprehensive income (loss) before income taxes             |  |                            | (24,376 | ) |                          |   | 35,430  |      |  |   | (57,291 | ) |  |   | (14,736 | )
|Tax effect                                                        |  |                            | 8,532   |   |                          |   | (12,387 | )    |  |   | 20,052  |   |  |   | 5,184   |  
|                                                                  |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Total other comprehensive income (loss)                           |  | $                          | (15,844 | ) |                          | $ | 23,043  |      |  | $ | (37,239 | ) |  | $ | (9,552  | )
|                                                                  |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  

9. Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding less the weighted average unvested restricted shares outstanding during the period. Diluted earnings per share is computed
using the weighted average number of shares determined for the basic computation in addition to the dilutive effect of potential common shares issuable under stock options and the restricted shares. For the three months ended June 30, 2006 and
2005, 2,665 and 733 weighted average shares, respectively, under option were excluded from the diluted earnings per share calculation as they were anti-dilutive. For the six months ended June 30, 2006 and 2005, 1,705 and 553 weighted average
shares, respectively, under option were excluded from the diluted earnings per share calculation as they were anti-dilutive.



|                                                     |  |                            |         |                          |   |         |  |      |         |  |   |        
|---------------------------------------------------- |  | -------------------------- | ------- | ------------------------ | - | ------- |  | ---- | ------- |  | - | -------
|                                                     |  | Three Months EndedJune 30, |         | Six Months EndedJune 30,
|                                                     |  | 2006                       |         | 2005                     |   | 2006    |  | 2005
|Numerator:                                           |  |                            |         |                          |   |         |  |      |         |  |   |        
|Net income                                           |  | $                          | 45,073  |                          | $ | 47,786  |  | $    | 95,713  |  | $ | 78,505 
|                                                     |  |                            |         |                          |   |         |  |      |         |  |   |        
|Denominator:                                         |  |                            |         |                          |   |         |  |      |         |  |   |        
|Weighted-average common shares outstanding (basic)   |  |                            | 108,463 |                          |   | 105,752 |  |      | 108,400 |  |   | 106,040
|Effect of non-vested restricted shares               |  |                            | 72      |                          |   | 10      |  |      | 71      |  |   | 6      
|Effect of stock options                              |  |                            | 731     |                          |   | 1,126   |  |      | 834     |  |   | 1,159  
|                                                     |  |                            |         |                          |   |         |  |      |         |  |   |        
|Weighted-average common shares outstanding (diluted) |  |                            | 109,266 |                          |   | 106,888 |  |      | 109,305 |  |   | 107,205
|                                                     |  |                            |         |                          |   |         |  |      |         |  |   |        
|Earnings per share:                                  |  |                            |         |                          |   |         |  |      |         |  |   |        
|Basic                                                |  | $                          | 0.42    |                          | $ | 0.45    |  | $    | 0.88    |  | $ | 0.74   
|Diluted                                              |  |                            | 0.41    |                          |   | 0.45    |  |      | 0.88    |  |   | 0.73   



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10. Capital Resources

The Federal Reserve Board (FRB) has established risk-based capital guidelines that must be observed by financial holding companies and banks. Failure to meet specified minimum capital requirements can result in certain mandatory actions by
primary regulators of Sky Financial and its bank subsidiary that could have a material effect on Sky Financials financial condition or results of operations. Under capital adequacy guidelines, Sky Financial and its bank subsidiary must meet
specific quantitative measures of their assets, liabilities and certain off-balance sheet items as determined under regulatory accounting practices. Sky Financials and its banks capital amounts and classification are also subject to
qualitative judgments by the regulators about components, risk weightings and other factors. Management believes, as of June 30, 2006, that Sky Financial and its bank meet all capital adequacy requirements to which they are subject.

Sky Financial and its bank have been notified by their respective regulators that, as of the most recent regulatory examinations, each is regarded as well capitalized
under the regulatory framework for prompt corrective action. Such determinations have been made evaluating Sky Financial and its bank under Tier I, total capital, and leverage ratios. There are no conditions or events since these notifications that
management believes have changed any of the well capitalized categorizations of Sky Financial and its bank subsidiary.



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##### Table of Contents

Sky Financials and Sky Banks capital ratios are presented in the following table:



|                                       |  |        |           |       |                                               |   |        |                                                                           |           |  |     |        |  |       |           |  |      |  
|-------------------------------------- |  | ------ | --------- | ----- | --------------------------------------------- | - | ------ | ------------------------------------------------------------------------- | --------- |  | --- | ------ |  | ----- | --------- |  | ---- | -
|                                       |  | Actual |           |       | Minimum RequiredFor Capital Adequacy Purposes |   |        | Required to be Well CapitalizedUnder Prompt CorrectiveAction Regulations  |          
|June 30, 2006                          |  | Amount |           | Ratio |                                               |   | Amount |                                                                           | Ratio     |  |     | Amount |  | Ratio |          
|Total capital to risk-weighted assets  |  |        |           |       |                                               |   |        |                                                                           |           |  |     |        |  |       |           |  |      |  
|Sky Financial                          |  | $      | 1,664,295 |       | 13.1                                          | % |        | $                                                                         | 1,018,252 |  | 8.0 | %      |  | $     | 1,272,815 |  | 10.0 | %
|Sky Bank                               |  |        | 1,438,054 |       | 11.6                                          |   |        |                                                                           | 994,258   |  | 8.0 |        |  |       | 1,242,822 |  | 10.0 |  
|                                       |  |        |           |       |                                               |  
|Tier 1 capital to risk-weighted assets |  |        |           |       |                                               |   |        |                                                                           |           |  |     |        |  |       |           |  |      |  
|Sky Financial                          |  | $      | 1,394,027 |       | 11.0                                          | % |        | $                                                                         | 509,126   |  | 4.0 | %      |  | $     | 763,689   |  | 6.0  | %
|Sky Bank                               |  |        | 1,223,386 |       | 9.8                                           |   |        |                                                                           | 497,129   |  | 4.0 |        |  |       | 745,693   |  | 6.0  |  
|                                       |  |        |           |       |                                               |  
|Tier 1 capital to average assets       |  |        |           |       |                                               |   |        |                                                                           |           |  |     |        |  |       |           |  |      |  
|Sky Financial                          |  | $      | 1,394,027 |       | 9.2                                           | % |        | $                                                                         | 608,906   |  | 4.0 | %      |  | $     | 761,133   |  | 5.0  | %
|Sky Bank                               |  |        | 1,223,386 |       | 8.1                                           |   |        |                                                                           | 603,708   |  | 4.0 |        |  |       | 754,636   |  | 5.0  |  
|                                       |  |        |          
|                                       |  | Actual |           |       | Minimum RequiredFor CapitalAdequacy Purposes  |   |        | Required to be Well Capitalized Under Prompt CorrectiveAction Regulations |          
|December 31, 2005                      |  | Amount |           | Ratio |                                               |   | Amount |                                                                           | Ratio     |  |     | Amount |  | Ratio |          
|Total capital to risk-weighted assets  |  |        |           |       |                                               |   |        |                                                                           |           |  |     |        |  |       |           |  |      |  
|Sky Financial                          |  | $      | 1,461,147 |       | 11.5                                          | % |        | $                                                                         | 1,013,831 |  | 8.0 | %      |  | $     | 1,267,289 |  | 10.0 | %
|Sky Bank                               |  |        | 1,376,814 |       | 11.2                                          |   |        |                                                                           | 987,953   |  | 8.0 |        |  |       | 1,234,942 |  | 10.0 |  
|                                       |  |        |           |       |                                               |  
|Tier 1 capital to risk-weighted assets |  |        |           |       |                                               |   |        |                                                                           |           |  |     |        |  |       |           |  |      |  
|Sky Financial                          |  | $      | 1,181,251 |       | 9.3                                           | % |        | $                                                                         | 506,916   |  | 4.0 | %      |  | $     | 760,374   |  | 6.0  | %
|Sky Bank                               |  |        | 1,160,318 |       | 9.4                                           |   |        |                                                                           | 493,977   |  | 4.0 |        |  |       | 740,965   |  | 6.0  |  
|                                       |  |        |           |       |                                               |  
|Tier 1 capital to average assets       |  |        |           |       |                                               |   |        |                                                                           |           |  |     |        |  |       |           |  |      |  
|Sky Financial                          |  | $      | 1,181,251 |       | 8.0                                           | % |        | $                                                                         | 593,486   |  | 4.0 | %      |  | $     | 741,857   |  | 5.0  | %
|Sky Bank                               |  |        | 1,160,318 |       | 7.9                                           |   |        |                                                                           | 587,832   |  | 4.0 |        |  |       | 734,790   |  | 5.0  |  

11. Goodwill and Intangible Assets

Goodwill at June 30, 2006 and December 31, 2005 was $524,144 and $521,862 respectively. Goodwill is reviewed annually for impairment. Sky Financial completed this review during the second quarter of 2006 and
determined that goodwill was not impaired.

Net other intangible assets at June 30, 2006 and December 31, 2005 were $59,804 and $67,077,
respectively. These assets consist primarily of core deposit intangibles and customer relationship intangibles and are being amortized in accordance with Sky Financials accounting policies. Amortization expense on finitelived intangible
assets is expected to be $14,601, $13,450, $12,299, $10,000 and $8,390 in 2006, 2007, 2008, 2009, and 2010 respectively. These charges are exclusive of any changes in amortization due to future acquisitions.

12. Line of Business Reporting

Sky Financial manages and operates
two major lines of business: community banking and financial services. Community banking includes lending and related services to businesses and consumers, mortgage banking and deposit-gathering. Other financial services consist of non-banking
companies engaged in trust and wealth management, insurance and other financial-related services.



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The reported line of business results reflect the underlying core operating performance within the business units. Parent
and Other is comprised of the parent company and several smaller business units. It includes the net funding cost of the parent company and intercompany eliminations. Expenses for centrally provided services and support are allocated based
principally upon estimated usage of services. All merger, integration and restructuring charges company-wide are included in Parent and Other. Substantially all of Sky Financials assets are part of the community banking line of business.

Selected segment information for the three and six months ended June 30, 2006 and 2005 is included in the following tables:



|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|------------------------------------------ |  | ---------------- | ---------- | --------------------------- | - | --------------- |  | - | ------- | - |  | - | ----------
|Three months ended June 30, 2006           |  | CommunityBanking |            | FinancialServicesAffiliates |   | ParentAnd Other |  |   | Total  
|Net interest income (expense)              |  | $                | 136,947    |                             | $ | 87              |  | $ | (3,814  | ) |  | $ | 133,220   
|Provision for credit losses                |  |                  | 9,476      |                             |   |                |  |   |        |   |  |   | 9,476     
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Net interest income (loss) after provision |  |                  | 127,471    |                             |   | 87              |  |   | (3,814  | ) |  |   | 123,744   
|Non-interest income                        |  |                  | 35,723     |                             |   | 20,298          |  |   | (10,066 | ) |  |   | 45,955    
|Non-interest expense                       |  |                  | 86,808     |                             |   | 16,289          |  |   | (1,176  | ) |  |   | 101,921   
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Income before income taxes                 |  |                  | 76,386     |                             |   | 4,096           |  |   | (12,704 | ) |  |   | 67,778    
|Income taxes                               |  |                  | 25,475     |                             |   | 1,844           |  |   | (4,614  | ) |  |   | 22,705    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Net income                                 |  | $                | 50,911     |                             | $ | 2,252           |  | $ | (8,090  | ) |  | $ | 45,073    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Goodwill at April 1, 2006                  |  | $                | 461,731    |                             | $ | 61,889          |  | $ |        |   |  | $ | 523,620   
|Net activity                               |  |                  | 520        |                             |   | 4               |  |   |        |   |  |   | 524       
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Goodwill at June 30, 2006                  |  | $                | 462,251    |                             | $ | 61,893          |  | $ |        |   |  | $ | 524,144   
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Average assets                             |  | $                | 15,491,730 |                             | $ | 105,625         |  | $ | 98,990  |   |  | $ | 15,696,345
|Depreciation and amortization              |  |                  | 8,018      |                             |   | 420             |  |   | 179     |   |  |   | 8,617     
|                                           |  |                  |            |                            
|Three months ended June 30, 2005           |  | CommunityBanking |            | FinancialServicesAffiliates |   | ParentAnd Other |  |   | Total  
|Net interest income (expense)              |  | $                | 129,824    |                             | $ | 127             |  | $ | (1,951  | ) |  | $ | 128,000   
|Provision for credit losses                |  |                  | 5,894      |                             |   |                |  |   |        |   |  |   | 5,894     
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Net interest income after provision        |  |                  | 123,930    |                             |   | 127             |  |   | (1,951  | ) |  |   | 122,106   
|Non-interest income                        |  |                  | 32,841     |                             |   | 18,211          |  |   | 464     |   |  |   | 51,516    
|Non-interest expense                       |  |                  | 83,450     |                             |   | 14,198          |  |   | 4,405   |   |  |   | 102,053   
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Income before income taxes                 |  |                  | 73,321     |                             |   | 4,140           |  |   | (5,892  | ) |  |   | 71,569    
|Income taxes                               |  |                  | 24,770     |                             |   | 1,750           |  |   | (2,737  | ) |  |   | 23,783    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Net income                                 |  | $                | 48,551     |                             | $ | 2,390           |  | $ | (3,155  | ) |  | $ | 47,786    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Goodwill at April 1, 2005                  |  | $                | 424,406    |                             | $ | 47,153          |  | $ |        |   |  | $ | 471,559   
|Net activity                               |  |                  | 33,485     |                             |   | 300             |  |   |        |   |  |   | 33,785    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Goodwill at June 30, 2005                  |  | $                | 457,891    |                             | $ | 47,453          |  | $ |        |   |  | $ | 505,344   
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Average assets                             |  | $                | 14,892,574 |                             | $ | 85,432          |  | $ | 117,043 |   |  | $ | 15,095,049
|Depreciation and amortization              |  |                  | 8,575      |                             |   | 191             |  |   | 360     |   |  |   | 9,126     



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|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|------------------------------------------ |  | ---------------- | ---------- | --------------------------- | - | --------------- |  | - | ------- | - |  | - | ----------
|Six months ended June 30, 2006             |  | CommunityBanking |            | FinancialServicesAffiliates |   | ParentAnd Other |  |   | Total  
|Net interest income (expense)              |  | $                | 271,975    |                             | $ | 191             |  | $ | (6,110  | ) |  | $ | 266,056   
|Provision for credit losses                |  |                  | 16,630     |                             |   |                |  |   |        |   |  |   | 16,630    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Net interest income (loss) after provision |  |                  | 255,345    |                             |   | 191             |  |   | (6,110  | ) |  |   | 249,426   
|Non-interest income                        |  |                  | 67,732     |                             |   | 44,549          |  |   | (9,667  | ) |  |   | 102,614   
|Non-interest expense                       |  |                  | 175,278    |                             |   | 33,046          |  |   | (225    | ) |  |   | 208,099   
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Income before income taxes                 |  |                  | 147,799    |                             |   | 11,694          |  |   | (15,552 | ) |  |   | 143,941   
|Income taxes                               |  |                  | 49,353     |                             |   | 4,975           |  |   | (6,100  | ) |  |   | 48,228    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Net income                                 |  | $                | 98,446     |                             | $ | 6,719           |  | $ | (9,452  | ) |  | $ | 95,713    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Goodwill at January 1, 2006                |  | $                | 461,571    |                             | $ | 60,291          |  | $ |        |   |  | $ | 521,862   
|Net activity                               |  |                  | 680        |                             |   | 1,602           |  |   |        |   |  |   | 2,282     
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Goodwill at June 30, 2006                  |  | $                | 462,251    |                             | $ | 61,893          |  | $ |        |   |  | $ | 524,144   
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Average assets                             |  | $                | 15,473,544 |                             | $ | 103,482         |  | $ | 100,910 |   |  | $ | 15,677,936
|Depreciation and amortization              |  |                  | 16,036     |                             |   | 834             |  |   | 371     |   |  |   | 17,241    
|                                           |  |                  |            |                            
|Six months ended June 30, 2005             |  | CommunityBanking |            | FinancialServicesAffiliates |   | ParentAnd Other |  |   | Total  
|Net interest income (expense)              |  | $                | 255,335    |                             | $ | 185             |  | $ | (3,513  | ) |  | $ | 252,007   
|Provision for credit losses                |  |                  | 36,717     |                             |   |                |  |   |        |   |  |   | 36,717    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Net interest income (loss) after provision |  |                  | 218,618    |                             |   | 185             |  |   | (3,513  | ) |  |   | 215,290   
|Non-interest income                        |  |                  | 63,083     |                             |   | 38,890          |  |   | 1,015   |   |  |   | 102,988   
|Non-interest expense                       |  |                  | 167,894    |                             |   | 28,768          |  |   | 4,831   |   |  |   | 201,493   
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Income before income taxes                 |  |                  | 113,807    |                             |   | 10,307          |  |   | (7,329  | ) |  |   | 116,785   
|Income taxes                               |  |                  | 37,914     |                             |   | 4,258           |  |   | (3,892  | ) |  |   | 38,280    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Net income                                 |  | $                | 75,893     |                             | $ | 6,049           |  | $ | (3,437  | ) |  | $ | 78,505    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Goodwill at January 1, 2005                |  | $                | 428,502    |                             | $ | 46,756          |  | $ |        |   |  | $ | 475,258   
|Net activity                               |  |                  | 29,389     |                             |   | 697             |  |   |        |   |  |   | 30,086    
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Goodwill at June 30, 2005                  |  | $                | 457,891    |                             | $ | 47,453          |  | $ |        |   |  | $ | 505,344   
|                                           |  |                  |            |                             |   |                 |  |   |         |   |  |   |           
|Average assets                             |  | $                | 14,812,223 |                             | $ | 84,577          |  | $ | 114,533 |   |  | $ | 15,011,333
|Depreciation and amortization              |  |                  | 17,086     |                             |   | 373             |  |   | 725     |   |  |   | 18,184    

13. Derivative Instruments and Hedging Activities

Sky Financials hedging policies permit the use of interest rate swaps, caps and floors to manage interest rate risk or to hedge specified assets and liabilities.
Sky Financial uses derivative instruments, primarily interest rate swaps, to manage interest rate risk on certain liabilities by hedging the fair value of certain fixed-rate debt, which converts the debt to variable rates, and by hedging the cash
flow variability associated with certain variable rate debt by converting the debt to fixed rates.

The derivative instruments and hedging relationships
below, identified as fair value and cash flow hedges, have been designated and qualify as either fair value or cash flow hedges. To qualify for hedge accounting under Statement of Financial Accounting Standards No. 133, Accounting for
Derivative Instruments and Hedging Activities, as



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amended, the effectiveness of each hedging relationship is assessed both at hedge inception and at each reporting period
thereafter. Also, at the end of each reporting period, ineffectiveness in the hedging relationships is measured as the difference between the change in fair value of the derivative instruments and the change in fair value of either the hedged items
(fair value hedges) or expected cash flows (cash flow hedges). Ineffectiveness, if any, is recorded in interest expense.

For derivatives not designated as
hedging instruments, all changes in fair value are recognized in non-interest income during the period of change. The net cash settlement of these derivatives is included in non-interest income.

Accounting Correction

During the
second quarter 2006, Sky Financial identified and corrected immaterial accounting errors related to certain derivative hedging relationships. The misstatements related to Sky Financials interpretation and application of the
shortcut method of hedge accounting under Statement No. 133. Sky Financial determined that these hedges did not qualify for hedge accounting using the shortcut method. As a result, changes in the market value of the
derivatives should have been recorded through non-interest income with no corresponding offset to the hedged item. Sky Financial evaluated the impact of these errors and concluded that the impact was not material to prior quarterly and annual
periods. Accordingly, an adjustment was recorded in the second quarter of 2006 to correct the cumulative impact of these errors.

The cumulative impact of
these out-of-period adjustments resulted in a charge to non-interest income of $7,951 ($5.287 after tax), which is included in derivative gains (losses) on swaps in the Consolidated Statements of Income. Of this cumulative adjustment, $4,814 ($3,201
after tax), relates to the first quarter of 2006 and $3,137 ($2,086 after tax) relates to periods prior to 2006. In addition, the change in fair values of such interest rate swaps was $1,979 ($1,316 after tax) during the second quarter of 2006,
which is also included in derivative gains (losses) on swaps in the Consolidated Statements of Income.

As of June 30, 2006, nine of these derivatives
remained outstanding with a total notional value of $248,600. Effective July 1, 2006, five of the derivatives were designated as hedges using the long-haul method under Statement No. 133 and effective July 12, 2006, the
remaining four of the derivatives were designated as hedges using the long-haul method. The hedged items associated with these derivatives consisted of borrowings, which continue to remain outstanding.

Fair Value Hedges - Interest Rate Swaps

Sky Financial uses interest rate swap agreements to hedge a portion of its fixed rate borrowings. The interest rate swaps effectively convert the fixed rate of interest on $45,000 of advances to the Federal Home Loan Bank of Cincinnati to
variable rates based on LIBOR plus a spread as defined in the agreements. Sky Financial also uses interest rate swap agreements to hedge long-term fixed rate commercial loans. At June 30, 2006, Sky Financial had $18,585 of such agreements. The
commercial loan swaps effectively convert the fixed rate of interest on these commercial loans to a variable rate based on LIBOR plus a spread as defined in the agreements. The interest rate swaps involve no exchange of principal either at inception
or maturity and have maturities and call options identical to the commercial loans. The arrangements have been designated as fair value hedges and both the change in the fair value of the hedges and the hedged transactions are reflected in earnings.
Because the hedging arrangements are considered highly effective, changes in the fair value of the interest rate swaps exactly offset the corresponding changes in the hedged items and, as a result, the changes in the fair value do not result in an
impact on net income.

Cash Flow Hedges

In the first quarter of 2006, Sky Financial entered into two interest rate swaps that fix the rate on $150,000 of variable rate borrowings on junior subordinated debentures owed to unconsolidated subsidiary trusts. As
part of its financing of the pending acquisition of Union Federal Bank, Sky Financial has borrowed $150,000 under junior subordinated debentures in the second quarter. Under the terms of the arrangement, Sky Financial pays a fixed rate of interest
and receives a variable rate based on LIBOR. The swaps are tested for effectiveness at inception and on a quarterly basis using the long-haul method and any ineffective portion will be recorded directly to interest expense.



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The effective portion of the change in the swaps fair value will be recorded in other comprehensive income, net of
tax.

Interest Rate Caps

During 2002, Sky Financial entered into two interest rate cap arrangements, and paid $1,456 to hedge its interest risk on $48,600 of federal funds purchased. The interest rate caps are designed to offset the impact of changes in the federal
fund purchased rate above the weighted average stated rate of 5.90%, and, as such, are considered to be highly effective. Any changes in the intrinsic values are recorded in other comprehensive income. The changes in the time values of the interest
rate caps, which are excluded from the assessment of hedge effectiveness, increased interest expense by $109 in both the first half of 2006 and 2005. No deferred gains or losses in accumulated other comprehensive income at June 30, 2006 are
expected to be reclassified to income from continuing operations in 2006.

Nondesignated Derivatives  Interest
Rate Swaps

Sky Financial uses interest rate swap agreements to hedge a portion of its fixed rate borrowings. The interest rate swaps effectively
convert the fixed rate of interest on $108,600 of the junior subordinated debentures owed to unconsolidated subsidiary trusts and $140,000 of convertible advances to the Federal Home Loan Bank of Cincinnati to variable rates based on LIBOR plus a
spread as defined in the agreements. Prior to July 2006, these swaps were not designated as hedges and as such, the changes in fair value were recognized in earnings during the second quarter of 2006 (see discussion of accounting correction above).

The following table presents the contract/notional and fair value amounts of all derivative transactions at June 30, 2006 and December 31, 2005:



|                                                                        |  |                 |         |            |   |        |  
|----------------------------------------------------------------------- |  | --------------- | ------- | ---------- | - | ------ | -
|At June 30, 2006                                                        |  | Notional Amount |         | Fair Value |  
|Designated hedging instruments                                          |  |                 |         |            |   |        |  
|Fair value hedges                                                       |  | $               | 63,585  |            | $ | (572   | )
|Cash flow hedges                                                        |  |                 | 150,000 |            |   | 3,031  |  
|Interest rate caps                                                      |  |                 | 48,600  |            |   | 199    |  
|                                                                        |  |                 |         |            |   |        |  
|Total designated hedging instruments                                    |  | $               | 262,185 |            | $ | 2,658  |  
|                                                                        |  |                 |         |            |   |        |  
|Nondesignated derivative instruments                                    |  |                 |         |            |   |        |  
|Interest rate swaps on junior subordinated debentures and FHLB Advances |  | $               | 248,600 |            | $ | (9,930 | )
|                                                                        |  |                 |         |            |   |        |  
|                                                                        |  |                
|At December 31, 2005                                                    |  |                 |         |            |  
|Designated hedging instruments                                          |  |                 |         |            |   |        |  
|Fair value hedges                                                       |  | $               | 362,415 |            | $ | (2,981 | )
|Interest rate caps                                                      |  |                 | 48,600  |            |   | 168    |  
|                                                                        |  |                 |         |            |   |        |  
|Total derivative instruments                                            |  | $               | 411,015 |            | $ | (2,813 | )
|                                                                        |  |                 |         |            |   |        |  

Interest Rate Swaps on Behalf of Clients

Sky Financial has entered into several commercial loan swaps in order to provide commercial loan clients the ability to swap from variable to fixed interest rates. Under
these agreements, Sky Financial enters into a variable rate loan agreement with a client in addition to a swap agreement. This swap agreement effectively swaps the clients variable rate loan into a fixed rate loan. Sky Financial then enters
into a corresponding swap agreement with a third party in order to swap its exposure on the variable to fixed rate swap on the commercial loan. At June 30, 2006 and December 31, 2005, Sky Financial had $88,214 and $65,138, respectively, of
notional amount of such agreements. As the interest rate swaps with the clients and third parties are not designated as hedges under FAS No. 133, the instruments are marked to market in earnings. As the interest rate swaps are structured to
offset each other, there was no net impact to earnings in the first half of 2006 and 2005 related to these swaps.



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14. Merger, Integration and Restructuring Expense

The following is a summary of activity in the merger, integration and restructuring liability for the six months ended June 30, 2006:



|                                    |  |                                 |      |   |                 |   |      |                           |  |   |                             |   |  |       |      |   |  |   |        |  
|----------------------------------- |  | ------------------------------- | ---- | - | --------------- | - | ---- | ------------------------- |  | - | --------------------------- | - |  | ----- | ---- | - |  | - | ------ | -
|                                    |  | EmployeeSeveranceandTermination |      |   | ConversionCosts |   |      | Lease/ContractTermination |  |   | ProfessionalFees/OtherCosts |   |  | Total |     
|Balance as of January 1, 2006       |  | $                               | 947  |   |                 | $ | 42   |                           |  | $ | 1,188                       |   |  | $     | 132  |   |  | $ | 2,309  |  
|                                    |  |                                 |      |   |                
|Accruals charged to expense         |  |                                 | 12   |   |                 |   | 228  |                           |  |   |                             |   |  |       | 304  |   |  |   | 544    |  
|Accruals from purchase accounting   |  |                                 | 27   |   |                 |   |      |                           |  |   |                             |   |  |       |      |   |  |   | 27     |  
|                                    |  |                                 |      |   |                
|Cash payments and other adjustments |  |                                 | (503 | ) |                 |   | (247 | )                         |  |   | (373                        | ) |  |       | (304 | ) |  |   | (1,427 | )
|                                    |  |                                 |      |   |                 |   |      |                           |  |   |                             |   |  |       |      |   |  |   |        |  
|Balance as of June 30, 2006         |  | $                               | 483  |   |                 | $ | 23   |                           |  | $ | 815                         |   |  | $     | 132  |   |  | $ | 1,453  |  
|                                    |  |                                 |      |   |                 |   |      |                           |  |   |                             |   |  |       |      |   |  |   |        |  

During the first six months of 2006, Sky Financial recorded $544 ($354 after tax) of merger, integration and
restructuring expense, of which $364 ($237 after tax) was recorded in the second quarter related to the pending acquisition of Union Federal Bank and $180 ($117 after tax) which was recorded in the first quarter related to the pending acquisition of
Union Federal Bank and additional costs related to the fourth quarter 2005 acquisition of Falls Bank.

The $1,031 ($670 after tax) of merger, integration
and restructuring expense during the second quarter of 2005 related to the acquisition of Belmont.

Sky Financial expects to pay a majority of the
remainder of the accrued costs over the next one to two years.

15. Commitments and Contingencies

Between August 2000 and December 2001, Sky Bank and two of its predecessor banks provided financing to a commercial borrower and its affiliated entities for the purchase
of six separate portfolios of commercial lease pools, and a warehouse line of credit to finance lease pools. These loans are secured by assignments of the payment streams from the underlying leases, surety bonds or insurance policies, and a limited
guarantee from the sole member of the commercial borrower.

Upon default of these commercial loans, Sky Bank (and its predecessors) made demand for payment
from Illinois Union Insurance Company (IU), RLI Insurance Company (RLI), and Royal Indemnity Company (Royal) under the relevant surety bonds and insurance policies. IU, RLI, and Royal (collectively, the
Sureties) have failed to make the payments required under the surety bonds and insurance policies. As a result, in the spring of 2002, Sky and its predecessors filed suit against each of the Sureties seeking to enforce Sky Banks
rights under the surety bonds and insurance policies issued by the Sureties in connection with the commercial lease pools. Skys complaints claim breach of contract, bad faith and allege that the Sureties are liable for the payments due to Sky
under the terms of the bonds and are estopped from asserting fraud as a defense to paying any claims under the bonds. In October, 2002, the suits were consolidated for pretrial purposes with more than 35 other lawsuits involving similar claims in
the United States District Court for the Northern District of Ohio, Eastern Division, under the Federal Multi-district Litigation (MDL) Rules.

The key defense of the Sureties in denying Sky Banks claims under the surety bonds is that they were fraudulently induced by the originator of the commercial leases to issue the surety bonds in the first instance. The Sureties have
also asserted related defenses that the underlying equipment leases are invalid, usurious, or otherwise unenforceable. Sky Bank believes that none of these defenses can defeat Sky Banks claims under the surety bonds, which, in the view of Sky
Bank, provide for absolute and unconditional guarantees of payment. Moreover, Sky Bank believes



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that the Sureties are responsible to Sky Bank, as the Obligee or Named Insured under the bonds, for the underwriting of
the lessees and leases, including all issues of fraud, and that the Sureties waived any defense of fraud to claims under the bonds.

On December 21,
2005, Sky sold and assigned to a third party, without recourse, all of its rights and interests in three loans secured by commercial lease pools and surety bonds issued by Royal. On March 31, 2006, Sky and IU settled in full its litigation
pertaining to two loans secured by pools of leases and insurance policies issued by IU. The aggregate principal balance of the three loans sold to a third party and the two loans which were settled was $14.2 million, and the aggregate proceeds
received by Sky in the sale and the settlement was $14.9 million.

With respect to the remaining pool and the warehouse line of credit secured by surety
bonds issued by RLI, which has a remaining principal balance of $15.4 million, Sky has amended its complaint and expects to proceed with pretrial discovery and motion practice in the MDL court in anticipation of trial.

Sky Financial has reviewed the relevant matters of fact and law with its special counsel and believes that it has substantial and meritorious claims against the
remaining Surety. Sky Financial has and will continue to vigorously assert all the rights and remedies available to it to obtain payment under the bonds. While the ultimate outcome of this matter cannot be determined at this time, Sky Financial
management does not believe that the outcome of these pending legal proceedings will materially affect the consolidated financial position or results of operations of Sky Financial.

A schedule of significant commitments at June 30, 2006 follows:



|                             |  |   |          
|---------------------------- |  | - | ---------
|Commitments to extend credit |  | $ | 3,492,814
|Standby letters of credit    |  |   | 227,334  
|Letters of credit            |  |   | 1,479    

On March 31, 2004, Sky Financial completed the sale of its dental financing affiliate, Sky Financial
Solutions. The Sky Financial Solutions sales agreement contains a contingency based upon future charge-offs between Sky Financial and the acquirer that may result in an adjustment to increase or decrease the sales price in future periods. Based on
historical experience and expected future performance, management does not believe that this provision will have a significant impact on future earnings, cash flows, or financial position.

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

(Dollars in
thousands, except per share data)

Three Months Ended June 30, 2006 and 2005

Overview

Net income for the second quarter of 2006 was $45,073 or
$0.41 per diluted share, down from $47,786 or $0.45 per diluted share in the second quarter of 2005. Sky Financials results for the second quarter 2006 include charges of $6,603 or $0.06 per diluted share for revised accounting for
derivatives. Partially offsetting the charges, the second quarter of 2006 benefited from disciplined net interest margin management and strong performance from fee-based businesses.

For the second quarter of 2006, net interest income increased $5,220 over the second quarter 2005, mainly due to a stable net interest margin and the growth in assets attributable to organic growth and acquisitions.
The provision for credit losses increased $3,582, primarily the result of the low level of second quarter of 2005 charge-offs and provision being lower than Sky Financials historical trend. The second quarter of 2006 charge-offs and provision
were in-line with Sky Financials expectations for the full year. Non-interest income decreased $5,561 in the second quarter of 2006 from the second quarter 2005 as a result of the derivative losses. Offsetting the derivative losses were
non-interest income increases as a result of the expansion from acquisitions throughout 2005 and into the first quarter of 2006 and the growth of fee-based businesses. The major components of this increase in non-interest income included a $1,753
increase in brokerage and insurance



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commissions, a $1,774 increase in other income and a $993 increase in service charges and fees on deposit accounts.
Non-interest expenses decreased in the second quarter of 2006 by $132 primarily as a result of continued focus on controlling operating expenses.

During
the second quarter 2006, Sky Financial identified immaterial accounting errors related to certain derivative transactions. Sky Financial evaluated the impact of these errors and concluded that the impact was not material to prior periods, both
annual and quarterly periods. Accordingly, an adjustment was recorded in the second quarter to correct the cumulative impact of these errors. See the discussion below in Non-Interest Income for more information.

Business Line Results

Sky Financials two major lines of
business include community banking and financial services. Community banking includes lending and related services to businesses and consumers, mortgage banking and deposit-gathering. Financial services consists of non-banking companies engaged in
trust and wealth management, insurance and other financial-related services. Sky Financials business line results for the second quarter ended June 30, 2006 and 2005 are summarized in the table below.



|                              |  |                   |        |   |      |   |        |  
|----------------------------- |  | ----------------- | ------ | - | ---- | - | ------ | -
|                              |  | Net Income (Loss) |       
|Quarter Ended June 30,        |  | 2006              |        |   | 2005 |  
|Community Banking             |  | $                 | 50,911 |   |      | $ | 48,551 |  
|Financial Services Affiliates |  |                   | 2,252  |   |      |   | 2,390  |  
|Parent and Other              |  |                   | (8,090 | ) |      |   | (3,155 | )
|                              |  |                   |        |   |      |   |        |  
|Consolidated Total            |  | $                 | 45,073 |   |      | $ | 47,786 |  
|                              |  |                   |        |   |      |   |        |  

The higher community banking net income in the second quarter of 2006 as compared to the same period of the
previous year is mainly due to higher net interest income and non-interest income due to the impact of acquisitions and organic growth. A stable net interest margin and higher average earning assets contributed to a 5.5% increase in net interest
income. These increases were partially offset by a higher provision for credit losses in 2006 than in the previous year as well as higher non-interest expenses. The higher non-interest income over 2005 included increases in service charges and
mortgage banking income. These increases were partially offset by a decrease in gains on sales of securities. Non-interest expenses increased 4.0% over the second quarter of 2005, primarily due to higher salaries and employee benefits expense. This
increase was primarily the result of a higher number of full-time equivalent employees due to the acquisitions in 2005 and the addition of six new financial centers over the past twelve months. The efficiency ratio, defined as non-interest expense
divided by the sum of fully taxable equivalent net interest income plus non-interest income, for the community banking segment was 50.06% for the second quarter of 2006 compared to 51.05% in the second quarter of 2005. The 2006 community banking
results reflect a ROE of 13.12% and a ROA of 1.32% compared to 13.50% and 1.31%, respectively, in the second quarter of 2005.

The financial service
affiliates net income decreased as compared to 2005 primarily the result of higher expenses related to salaries and employee benefits, mostly offset by higher brokerage and insurance commissions and trust services.

Parent and other include the net funding costs of the parent company and intercompany billings to other affiliates for shared services. The decrease in parent and other
results of operations from the prior year second quarter relate primarily to the derivative losses on swaps recorded in the second quarter of 2006 and the higher interest expenses retained by the parent, partially offset by lower employee
compensation expense during the quarter.

Net Interest Income

Net interest income for the second quarter of 2006 was $133,220, an increase of $5,220 or 4.1% from $128,000 in the second quarter of 2005. Net interest income, the difference between interest income earned on interest-earning assets and
interest expense incurred on interest-bearing liabilities, is the most significant component of Sky Financials earnings. Net interest income is affected by changes in the volumes, rates and composition of interest-earning assets and
interest-bearing liabilities. Average earning assets increased 3.5% from the second quarter last



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year from a combination of organic growth and acquisitions. Average loans for the quarter increased 4.1% over 2005s
volume during the same quarter, with organic growth contributing 2.7% in addition to the acquisitions. Sky Financials net interest margin for the three months ended June 30, 2006 and 2005 was 3.75% and 3.73%, respectively. The higher net
interest margin continued to reflect disciplined spread management and interest rate risk management practices, despite competitive market conditions in the areas that Sky Financial operates.

The following table reflects the components of Sky Financials net interest income for the three months ended June 30, 2006 and 2005. Rates are computed on a
tax equivalent basis and non-accrual loans have been included in the average balances. Certain amounts from prior year have been reclassified to conform to current year presentation.



|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|-------------------------------------------------------------------------------------------- |  | -------------------------------- | ---------- | ---------------------- | -------------------------------- | ------- |  | ---- | -------------- |  | ---------------------- | ---------- | ---- | - | ------- |  | ---- | -
|                                                                                             |  | Three Months Ended June 30, 2006 |            |                        | Three Months Ended June 30, 2005 |        
|                                                                                             |  | AverageBalance                   |            | InterestIncome/Expense |                                  | Rate    |  |      | AverageBalance |  | InterestIncome/Expense |            | Rate |  
|                                                                                             |  | (Dollars in thousands)           |           
|Assets                                                                                       |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Interest-earning assets:                                                                     |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Interest-bearing deposits in banks                                                           |  | $                                | 15,041     |                        | $                                | 204     |  | 5.45 | %              |  | $                      | 34,747     |      | $ | 166     |  | 1.92 | %
|Federal funds sold                                                                           |  |                                  | 3,115      |                        |                                  | 37      |  | 4.82 |                |  |                        | 3,164      |      |   | 9       |  | 1.14 |  
|Securities                                                                                   |  |                                  | 3,139,803  |                        |                                  | 36,945  |  | 4.72 |                |  |                        | 3,077,456  |      |   | 33,471  |  | 4.36 |  
|Loans and loans held for sale                                                                |  |                                  | 11,183,208 |                        |                                  | 206,712 |  | 7.41 |                |  |                        | 10,742,896 |      |   | 170,195 |  | 6.35 |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total interest-earning assets                                                                |  |                                  | 14,341,167 |                        |                                  | 243,898 |  | 6.82 |                |  |                        | 13,858,263 |      |   | 203,841 |  | 5.90 |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Noninterest-earning assets                                                                   |  |                                  | 1,355,178  |                        |                                  |         |  |      |                |  |                        | 1,236,786  |      |   |         |  |      |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total assets                                                                                 |  | $                                | 15,696,345 |                        |                                  |         |  |      |                |  | $                      | 15,095,049 |      |   |         |  |      |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Liabilities and Shareholders Equity                                                         |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Interest-bearing liabilities:                                                                |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Demand deposits                                                                              |  | $                                | 363,571    |                        |                                  | 1,755   |  | 1.94 |                |  | $                      | 356,204    |      |   | 1,205   |  | 1.36 |  
|Savings deposits                                                                             |  |                                  | 3,327,005  |                        |                                  | 15,718  |  | 1.89 |                |  |                        | 3,752,819  |      |   | 10,722  |  | 1.15 |  
|Time deposits                                                                                |  |                                  | 5,639,881  |                        |                                  | 57,377  |  | 4.08 |                |  |                        | 4,786,776  |      |   | 36,740  |  | 3.08 |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total interest-bearing deposits                                                              |  |                                  | 9,330,457  |                        |                                  | 74,850  |  | 3.22 |                |  |                        | 8,895,799  |      |   | 48,667  |  | 2.19 |  
|Short-term borrowings                                                                        |  |                                  | 913,764    |                        |                                  | 9,949   |  | 4.37 |                |  |                        | 892,024    |      |   | 6,681   |  | 3.00 |  
|Junior Subordinated Debentures                                                               |  |                                  | 254,433    |                        |                                  | 5,077   |  | 8.00 |                |  |                        | 189,801    |      |   | 2,938   |  | 6.21 |  
|Debt and FHLB advances                                                                       |  |                                  | 1,769,097  |                        |                                  | 20,050  |  | 4.55 |                |  |                        | 1,919,808  |      |   | 16,743  |  | 3.50 |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total interest-bearing liabilities                                                           |  |                                  | 12,267,751 |                        |                                  | 109,926 |  | 3.59 |                |  |                        | 11,897,432 |      |   | 75,029  |  | 2.53 |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Noninterest-bearing liabilities                                                              |  |                                  | 1,845,361  |                        |                                  |         |  |      |                |  |                        | 1,759,174  |      |   |         |  |      |  
|Shareholders equity                                                                         |  |                                  | 1,583,233  |                        |                                  |         |  |      |                |  |                        | 1,438,443  |      |   |         |  |      |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total liabilities and equity                                                                 |  | $                                | 15,696,345 |                        |                                  |         |  |      |                |  | $                      | 15,095,049 |      |   |         |  |      |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Net interest income (tax equivalent basis)                                                   |  |                                  |            |                        | $                                | 133,972 |  |      |                |  |                        |            |      | $ | 128,812 |  |      |  
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Net interest rate spread (tax equivalent basis)                                              |  |                                  |            |                        |                                  |         |  | 3.23 | %              |  |                        |            |      |   |         |  | 3.37 | %
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Net interest margin, (interest income, taxable equivalent basis, to interest earning assets) |  |                                  |            |                        |                                  |         |  | 3.75 | %              |  |                        |            |      |   |         |  | 3.73 | %
|                                                                                             |  |                                  |            |                        |                                  |         |  |      |                |  |                        |            |      |   |         |  |      |  



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Provision for Credit Losses

The provision for credit losses represents the charge to income necessary to adjust the allowance for loan losses and the allowance for unfunded loan commitments and letters of credit to an amount that represents managements
assessment of the estimated probable credit losses inherent in Sky Financials loan portfolio which have been incurred at each balance sheet date. The provision for credit losses increased $3,582 or 60.8% to $9,476 in the second quarter of 2006
compared to $5,894 in the second quarter of 2005. Net charge-offs were $8,270 or 0.30% (annualized) of average loans during the three months ended June 30, 2006, compared to $5,817 or 0.22% (annualized) for the same period in 2005. The second
quarter of 2005 charge-offs and provision were lower than Sky Financials historical trend. The second quarter of 2006 provision and charge-offs were more indicative of Sky Financials historical trend and in-line with expectation for the
full year.



|                                                                  |  |              |   |  |                  |   |  |              |  
|----------------------------------------------------------------- |  | ------------ | - |  | ---------------- | - |  | ------------ | -
|                                                                  |  | June 30,2006 |   |  | December 31,2005 |   |  | June 30,2005 |  
|Allowance for loan losses as a percentage of loans                |  | 1.29         | % |  | 1.30             | % |  | 1.41         | %
|Allowance for loan losses as a percentage of non-performing loans |  | 115.79       | % |  | 120.88           | % |  | 120.06       | %

See section titled Non-Performing Assets of managements discussion and analysis regarding
$15,438 of non-performing loans backed by sureties.

Non-Interest Income

Non-interest income for the second quarter of 2006 was $45,955, a decrease of $5,561 or 10.8% from $51,516 for the second quarter of 2005. The change in non-interest income reflects a charge for revised accounting for
derivatives discussed below, which was partially offset by growth from acquisitions and the emphasis of Sky Financial on expanding its profitable fee-based businesses.

During the second quarter 2006, Sky Financial identified and corrected immaterial accounting errors related to certain derivative hedging relationships. The misstatements related to Sky Financials interpretation
and application of the shortcut method of hedge accounting under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. Sky Financial determined that these hedges did not qualify for hedge accounting
using the shortcut method. As a result, changes in the market value of the derivatives should have been recorded through non-interest income with no corresponding offset to the hedged item. Sky Financial evaluated the impact of these
errors and concluded that the impact was not material to prior quarterly and annual periods. Accordingly, an adjustment was recorded in the second quarter of 2006 to correct the cumulative impact of these errors.

The cumulative impact of these out-of-period adjustments resulted in a charge to non-interest income of $7,951 which is included in derivative gains (losses) on swaps.
Of this cumulative adjustment, $4,814, relates to the first quarter of 2006 and $3,137 relates to periods prior to 2006. In addition, the change in fair values of such interest rate swaps was $1,979 during the second quarter of 2006, which is also
included in derivative gains (losses) on swaps.

Non-interest income growth was most significant in brokerage and insurance commissions, which recorded
revenues of $15,880 during the second quarter of 2006, an increase of $1,753 or 12.4% from the same period in 2005. The increased revenues were primarily due to acquisitions and higher commission income. Service charges and fees on deposit accounts
for the second quarter of 2006 were $15,026, up $993 or 7.1% from the second quarter of 2005 primarily due to deposit growth from acquisitions and organic growth. Trust services income for the second quarter of 2006 was $6,012, up $617 or 11.4% over
the second quarter of 2005, primarily from acquisitions and organic growth. The assets under trust management have grown to $4.8 billion at June 30, 2006 from $4.5 billion at June 30, 2005. Other income increased 16.2% over the second
quarter of 2005 due to a $1.0 million gain on the early extinguishment of debt, higher debit card fees and higher gains on the sales of loans.



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Mortgage banking income was $6,518 during the second quarter of 2006, an increase of $595 or 10.0%. This increase was due
primarily to lower amortization and lower impairment charges during the second quarter of 2006, partially offset by lower origination and sales revenue compared to the second quarter of 2005 The components of mortgage banking income for the second
quarter of 2006 and 2005 are as follows:



|                                |  |              |        |   |              |   |        |  
|------------------------------- |  | ------------ | ------ | - | ------------ | - | ------ | -
|                                |  | June 30,2006 |        |   | June 30,2005 |  
|Origination and sales revenue   |  | $            | 5,098  |   |              | $ | 6,482  |  
|Mortgage loan servicing income  |  |              | 3,879  |   |              |   | 3,795  |  
|Amortization expense            |  |              | (2,465 | ) |              |   | (3,433 | )
|Impairment (charges) recoveries |  |              | 6      |   |              |   | (921   | )
|                                |  |              |        |   |              |   |        |  
|Total                           |  | $            | 6,518  |   |              | $ | 5,923  |  
|                                |  |              |        |   |              |   |        |  

Non-Interest Expense

Non-interest expense for the second quarter of 2006 was $101,921, a decrease of $132 or 0.1%, from $102,053 reported for the same quarter of 2005. Salary and other employee costs were $55,805, up $1,126 or 2.1% as compared to the second
quarter of 2005 mainly due to higher costs of group health benefits and an increase of approximately 100 full-time equivalent employees compared to the second quarter of 2005. The increased number of employees is mainly due to additional employees
from the acquisitions of Falls Bank in the fourth quarter 2005 and three insurance agencies in the third and fourth quarters of 2005. Occupancy and equipment costs were $17,134, up $299 or 1.8% compared to the same period of 2005 and other operating
expenses were $24,810, down $1,088 or 4.2% as compared to the second quarter of 2005. Amortization expense increased $198, or 5.5% from the second quarter of 2005 due to the additional intangible assets acquired from recent acquisitions. Merger,
integration and restructuring charges of $364 were recognized in the second quarter of 2006 related to the pending acquisition of Union Federal Bank. Charges of $1,031 were recognized in the second quarter of 2005 related to the acquisition of
Belmont Bancorp. Expenses were further impacted by the addition of six new financial centers over the last twelve months. The efficiency ratio was 56.65% for the second quarter of 2006, up from 56.59% for the same quarter last year. The efficiency
ratio is defined as non-interest expense divided by the sum of fully taxable equivalent net interest income plus non-interest income.

Sky Financial
adopted FAS 123(R) in the fourth quarter of 2005 using the modified retrospective method for interim periods and restated the first three quarters of 2005 for stock option expense using the pro forma expense originally disclosed.

Six Months Ended June 30, 2006 and 2005

Overview

Net income for the first six months of 2006 was $95,713 or $0.88 per diluted share, up from $78,505 or $0.73 per diluted share in the first six months
of 2005. Sky Financials results for the first six months of 2006 benefited from disciplined net interest margin management and strong performance from fee-based businesses, which were partially offset by charges for revised accounting for
derivatives recorded in the second quarter. The first six months of 2006 benefited from lower credit losses,, which totaled $16,630 compared to $36,717 in the first six months of 2005.

For the first six months of 2006, net interest income increased $14,049 over the first six months of 2005, mainly due to a stable net margin and the growth in assets attributable to organic growth and acquisitions.
The provision for credit losses decreased $20,087, primarily due to higher net charge-offs in the first six months of 2005. The higher net charge-offs were primarily from two large commercial credits and the sale of a group of non-performing
consumer loans. Non-interest income decreased $374 in the first six months of 2006 from the first six months of 2005 as a result of the derivative losses for revised accounting. Offsetting the derivative losses were non-interest income increases as
a result of the expansion from acquisitions throughout 2005 and into the first quarter of 2006 and the growth of fee-based businesses. The major components of this increase in non-interest income included a $4,914 increase in brokerage and insurance
commissions and a $2,320 increase in service charges and fees on deposit accounts. Non-interest expenses increased for the first six



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months of 2006 by $6,606 over the first six months of 2005 mainly due to higher stock-based compensation expense for
retirement eligible employees, higher costs of group health benefits and an increase in the number of full-time equivalent employees compared to the first six months of 2005, primarily from acquisitions in 2005.

Business Line Results

Sky Financials two major lines of
business include community banking and financial services. Community banking includes lending and related services to businesses and consumers, mortgage banking and deposit-gathering. Financial services consists of non-banking companies engaged in
trust and wealth management, insurance and other financial-related services. Sky Financials business line results for the six months ended June 30, 2006 and 2005 are summarized in the table below.



|                              |  |                   |        |   |      |   |        |  
|----------------------------- |  | ----------------- | ------ | - | ---- | - | ------ | -
|                              |  | Net Income (Loss) |       
|Six Months Ended June 30,     |  | 2006              |        |   | 2005 |  
|Community Banking             |  | $                 | 98,446 |   |      | $ | 75,893 |  
|Financial Services Affiliates |  |                   | 6,719  |   |      |   | 6,049  |  
|Parent and Other              |  |                   | (9,452 | ) |      |   | (3,437 | )
|                              |  |                   |        |   |      |   |        |  
|Consolidated Total            |  | $                 | 95,713 |   |      | $ | 78,505 |  
|                              |  |                   |        |   |      |   |        |  

The higher community banking net income in the first six months of 2006 as compared to the same period of the
previous year is mainly due to the lower credit losses in the current year and the impact of acquisitions and organic growth. The benefits of disciplined net interest margin management and higher average earning assets contributed to a 6.5% increase
in net interest income. The higher non-interest income over 2005 included increases in service charges and mortgage banking. These increases were partially offset by a decrease in gains on sales of securities. Non-interest expenses increased 4.4%
over the first six months of 2005, primarily due to higher salaries and employee benefits expense. This increase was primarily the result of higher stock-based compensation expense and a higher number of full-time equivalent employees due to the
acquisitions in 2005. The efficiency ratio, defined as non-interest expense divided by the sum of fully taxable equivalent net interest income plus non-interest income, for the community banking segment was 51.37% for the first six months of 2006
compared to 52.46% in the first six months of 2005. The 2006 community banking results reflect a ROE of 12.80% and a ROA of 1.28% compared to 10.65% and 1.03%, respectively, in the first six months of 2005.

The financial service affiliates net income increased as compared to 2005 from acquisitions and growth in brokerage and insurance commissions and trust services.

Parent and other includes the net funding costs of the parent company and intercompany billings to other affiliates for shared services. The decrease in
parent and other results of operations from the prior year period relate primarily to higher interest expenses retained by the parent, higher expenses related to stock compensation and the derivative losses on swaps from revised accounting recorded
in the second quarter.

Net Interest Income

Net
interest income for the first six months of 2006 was $266,056, an increase of $14,049 or 5.6% from $252,007 for the first six months of 2005. Net interest income, the difference between interest income earned on interest-earning assets and interest
expense incurred on interest-bearing liabilities, is the most significant component of Sky Financials earnings. Net interest income is affected by changes in the volumes, rates and composition of interest-earning assets and interest-bearing
liabilities. Average earning assets increased 3.9% from the first six months of 2005 from a combination of organic growth and acquisitions. Average loans for the period increased 4.8% over 2005s volume during the same period. Sky
Financials net interest margin for the six months ended June 30, 2006 and 2005 was 3.77% and 3.71%, respectively. The higher net interest margin continued to reflect disciplined spread management and interest rate risk management
practices, despite competitive market conditions in the areas that Sky Financial operates. In addition, the margin in the first six months of 2006 benefited from interest collected on certain non-accrual loans that increased the margin approximately
one and a half basis points.



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##### Table of Contents

The following table reflects the components of Sky Financials net interest income for the six months ended
June 30, 2006 and 2005. Rates are computed on a tax equivalent basis and non-accrual loans have been included in the average balances. Certain amounts from prior year have been reclassified to conform to current year presentation.



|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|-------------------------------------------------------------------------------------------- |  | ------------------------------ | ---------- | ---------------------- | ------------------------------ | ------- |  | ---- | -------------- |  | ---------------------- | ---------- | ---- | - | ------- |  | ---- | -
|                                                                                             |  | Six Months Ended June 30, 2006 |            |                        | Six Months Ended June 30, 2005 |        
|                                                                                             |  | AverageBalance                 |            | InterestIncome/Expense |                                | Rate    |  |      | AverageBalance |  | InterestIncome/Expense |            | Rate |  
|                                                                                             |  | (Dollars in thousands)         |           
|Assets                                                                                       |  |                                |            |                       
|Interest-earning assets:                                                                     |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Interest-bearing deposits in banks                                                           |  | $                              | 13,800     |                        | $                              | 460     |  | 6.72 | %              |  | $                      | 36,334     |      | $ | 334     |  | 1.85 | %
|Federal funds sold                                                                           |  |                                | 2,881      |                        |                                | 66      |  | 4.62 |                |  |                        | 1,591      |      |   | 9       |  | 1.14 |  
|Securities                                                                                   |  |                                | 3,127,721  |                        |                                | 74,068  |  | 4.78 |                |  |                        | 3,065,931  |      |   | 67,724  |  | 4.45 |  
|Loans and loans held for sale                                                                |  |                                | 11,185,701 |                        |                                | 404,116 |  | 7.29 |                |  |                        | 10,684,942 |      |   | 328,184 |  | 6.19 |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total interest-earning assets                                                                |  |                                | 14,330,103 |                        |                                | 478,710 |  | 6.74 |                |  |                        | 13,788,797 |      |   | 396,251 |  | 5.80 |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Noninterest-earning assets                                                                   |  |                                | 1,347,833  |                        |                                |         |  |      |                |  |                        | 1,222,536  |      |   |         |  |      |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total assets                                                                                 |  | $                              | 15,677,936 |                        |                                |         |  |      |                |  | $                      | 15,011,333 |      |   |         |  |      |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Liabilities and Shareholders Equity                                                         |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Interest-bearing liabilities:                                                                |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Demand deposits                                                                              |  | $                              | 351,142    |                        |                                | 3,243   |  | 1.86 |                |  | $                      | 351,716    |      |   | 2,263   |  | 1.30 |  
|Savings deposits                                                                             |  |                                | 3,365,183  |                        |                                | 30,164  |  | 1.81 |                |  |                        | 3,815,951  |      |   | 20,695  |  | 1.09 |  
|Time deposits                                                                                |  |                                | 5,506,869  |                        |                                | 107,634 |  | 3.94 |                |  |                        | 4,709,676  |      |   | 70,012  |  | 3.00 |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total interest-bearing deposits                                                              |  |                                | 9,223,194  |                        |                                | 141,041 |  | 3.08 |                |  |                        | 8,877,343  |      |   | 92,970  |  | 2.11 |  
|Short-term borrowings                                                                        |  |                                | 966,911    |                        |                                | 20,307  |  | 4.24 |                |  |                        | 903,930    |      |   | 12,647  |  | 2.82 |  
|Junior Subordinated Debentures                                                               |  |                                | 219,630    |                        |                                | 8,556   |  | 7.86 |                |  |                        | 189,763    |      |   | 5,670   |  | 6.03 |  
|Debt and FHLB advances                                                                       |  |                                | 1,857,874  |                        |                                | 41,230  |  | 4.48 |                |  |                        | 1,856,419  |      |   | 31,329  |  | 3.40 |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total interest-bearing liabilities                                                           |  |                                | 12,267,609 |                        |                                | 211,134 |  | 3.47 |                |  |                        | 11,827,455 |      |   | 142,616 |  | 2.43 |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Noninterest-bearing liabilities                                                              |  |                                | 1,833,281  |                        |                                |         |  |      |                |  |                        | 1,732,783  |      |   |         |  |      |  
|Shareholders equity                                                                         |  |                                | 1,577,046  |                        |                                |         |  |      |                |  |                        | 1,451,095  |      |   |         |  |      |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Total liabilities and equity                                                                 |  | $                              | 15,677,936 |                        |                                |         |  |      |                |  | $                      | 15,011,333 |      |   |         |  |      |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Net interest income (tax equivalent basis)                                                   |  |                                |            |                        | $                              | 267,576 |  |      |                |  |                        |            |      | $ | 253,635 |  |      |  
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Net interest rate spread (tax equivalent basis)                                              |  |                                |            |                        |                                |         |  | 3.27 | %              |  |                        |            |      |   |         |  | 3.36 | %
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  
|Net interest margin, (interest income, taxable equivalent basis, to interest earning assets) |  |                                |            |                        |                                |         |  | 3.77 | %              |  |                        |            |      |   |         |  | 3.71 | %
|                                                                                             |  |                                |            |                        |                                |         |  |      |                |  |                        |            |      |   |         |  |      |  



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##### Table of Contents

Provision for Credit Losses

The provision for credit losses represents the charge to income necessary to adjust the allowance for loan losses and the allowance for unfunded loan commitments and letters of credit to an amount that represents managements
assessment of the estimated probable credit losses inherent in Sky Financials loan portfolio which have been incurred at each balance sheet date. The provision for credit losses decreased $20,087 or 54.7% to $16,630 in the first six months of
2006 compared to $36,717 in the first six months of 2005. The higher provision for credit losses in the first six months of 2005 was due to higher net charge-offs in the first quarter, primarily from two large commercial credits and the sale of a
group of non-performing consumer loans which totaled $15,700. Net charge-offs were $16,301 or 0.29% (annualized) of average loans during the six months ended June 30, 2006, compared to $37,565 or 0.71% (annualized) for the same period in 2005.
Sky Financial expects credit losses for the remainder of 2006 to remain below .35% (annualized), generally consistent with those achieved during the first six months as a result of the improved credit risk profile achieved over the last year.

Non-Interest Income

Non-interest income for the first
six months of 2006 was $102,614, a decrease of $374 or 0.4% from $102,988 for the first six months of 2005. The change in non-interest income reflects a charge for revised accounting for derivatives, which was partially offset by growth from of
acquisitions and the emphasis of Sky Financial on expanding its profitable fee-based businesses.

During the second quarter 2006, Sky Financial identified
and corrected immaterial accounting errors related to certain derivative hedging relationships. The misstatements related to Sky Financials interpretation and application of the shortcut method of hedge accounting under SFAS
No. 133, Accounting for Derivative Instruments and Hedging Activities. Sky Financial determined that these hedges did not qualify for hedge accounting using the shortcut method. As a result, changes in the market value
of the derivatives should have been recorded through non-interest income with no corresponding offset to the hedged item. Sky Financial evaluated the impact of these errors and concluded that the impact was not material to prior quarterly and annual
periods. Accordingly, an adjustment was recorded in the second quarter of 2006 to correct the cumulative impact of these errors.

The cumulative impact of
these out-of-period adjustments resulted in a charge to non-interest income of $7,951 which is included in derivative gains (losses) on swaps. Of this cumulative adjustment, $4,814, relates to the first quarter of 2006 and $3,137 relates to periods
prior to 2006. In addition, the change in fair values of such interest rate swaps was $1,979 during the second quarter of 2006, which is also included in derivative gains (losses) on swaps

Non-interest income growth was most significant in brokerage and insurance commissions, which recorded revenues of $35,672 during the first six months of 2006, an
increase of $4,914 or 16.0% from the same period in 2005. The increased revenues were primarily due to acquisitions and higher commission income. Service charges and fees on deposit accounts for the first six months of 2006 were $28,525, up $2,320
or 8.9% from the first six months of 2005 primarily due to deposit growth from acquisitions and organic growth. Trust services income for the first six months of 2006 was $11,893, up $1,084 or 10.0% over the first six month of 2005, primarily from
acquisitions and organic growth. The assets under trust management have grown to $4.8 billion at June 30, 2006 from $4.5 billion at June 30, 2005. Other income increased 14.3% over the first six months of 2005 due to a $1.0 million gain on
the early extinguishment of debt, higher debit card fees and higher gains on the sales of loans.

Mortgage banking income was $12,081 during the first six
months of 2006, an increase of $402 or 3.4%. This increase was due primarily to lower amortization expenses, partially offset by lower origination and sales revenue. The components of mortgage banking income for the first six months of 2006 and 2005
are as follows:



|                                |  |              |        |   |              |   |        |  
|------------------------------- |  | ------------ | ------ | - | ------------ | - | ------ | -
|                                |  | June 30,2006 |        |   | June 30,2005 |  
|Origination and sales revenue   |  | $            | 9,244  |   |              | $ | 11,199 |  
|Mortgage loan servicing income  |  |              | 7,803  |   |              |   | 7,583  |  
|Amortization expense            |  |              | (4,953 | ) |              |   | (7,010 | )
|Impairment (charges) recoveries |  |              | (13    | ) |              |   | (93    | )
|                                |  |              |        |   |              |   |        |  
|Total                           |  | $            | 12,081 |   |              | $ | 11,679 |  
|                                |  |              |        |   |              |   |        |  



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##### Table of Contents

Non-Interest Expense

Non-interest expense for the first six months of 2006 was $208,099, an increase of $6,606 or 3.3%, from $201,493 reported for the same period of 2005. Salary and other employee costs were $115,619, up $7,435 or 6.9% as compared to the first
six months of 2005 mainly due to higher stock-based compensation expense for retirement eligible employees as discussed further below, higher costs of group health benefits and an increase of approximately 100 full-time equivalent employees over the
prior year. The increased number of employees is mainly due to additional employees from the acquisitions of Falls Bank in the fourth quarter of 2005 and three insurance agencies in the third and fourth quarters of 2005. Occupancy and equipment
costs were $34,777, up $338 or 1.0% compared to the same period of 2005 and other operating expenses were $49,474, down $1,201 or 2.4% as compared to the first six months of 2005, primarily as a result of continued focus on controlling operating
expenses. Amortization expense increased $521, or 7.3% from the first six months of 2005 due to the additional intangible assets acquired from recent acquisitions. Merger, integration and restructuring charges of $544 were recognized in the first
six months of 2006 related to the pending acquisition of Union Federal Bank and additional costs related to the fourth quarter 2005 acquisition of Falls Bank. Charges of $1,031 were recognized in the second quarter of 2005 related to the acquisition
of Belmont Bancorp. Expenses were further impacted by the addition of six new financial centers over the last twelve months. The efficiency ratio was 56.21% for the first six months of 2006, down from 56.50% for the same period last year. The
efficiency ratio is defined as non-interest expense divided by the sum of fully taxable equivalent net interest income plus non-interest income.

Sky
Financial adopted FAS 123(R) in the fourth quarter of 2005 using the modified retrospective method for interim periods and restated the first three quarters of 2005 for stock option expense using the pro forma expense originally disclosed. In the
first quarter of 2006, shares of restricted stock and stock options were granted to directors, officers and employees under various restricted stock and stock option plans and, as required by FAS 123(R), the compensation costs for the awards granted
after the adoption of FAS 123(R) to employee participants that were retirement eligible were recognized at the grant date. As a result, the first six months of 2006 expense of $4,308 was higher than the $2,717 expensed in the first six months of
2005 as this change in policy resulted in the acceleration of the expense for the awards issued to participants that were retirement eligible under the plans.

Income Taxes

The provision for income taxes for the first six months of 2006 increased $9,948 to $48,228 from $38,280 for the same period
in 2005 due to higher pretax income. The effective tax rate for the six months ended June 30, 2006 was 33.5% as compared to 32.8% for the first six months of 2005 and 33.4% for the full year of 2005.

Balance Sheet

At June 30, 2006, total assets were $15,751,002,
an increase of $67,711 from December 31, 2005, due primarily to an increase in loans of $68,812 related to organic growth. This growth was largely financed by an increase in deposits.

Total deposits increased $336,045 due to organic growth, which allowed debt levels to decrease by $115,030 and securities sold under repurchase agreements and federal
funds purchased to decline by $169,841.

Shareholders equity totaled $1,574,513 at June 30, 2006, increasing $20,636 from December 31,
2005. Common stock increased $7,263 due to stock option exercises, shares issued for an insurance agency acquisition and stock



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##### Table of Contents

based compensation expense. Treasury stock decreased by $4,200, due primarily to shares issued for restricted stock
during the first quarter of 2006. Net retained earnings (net income less cash dividends) at June 30, 2006 totaled $477,122 as compared to $430,710 at December 31, 2005. The increase is due to the net income for the period, less dividends
paid. Accumulated other comprehensive loss increased by $37,239, primarily due to a decrease in the market value of securities available for sale.

Non-Performing Assets

The following table presents the aggregate amounts of non-performing assets and respective ratios on the dates
indicated.



|                                                                     |  |              |         |   |                  |   |         |              |  |   |         |  
|-------------------------------------------------------------------- |  | ------------ | ------- | - | ---------------- | - | ------- | ------------ |  | - | ------- | -
|                                                                     |  | June 30,2006 |         |   | December 31,2005 |   |         | June 30,2005 | 
|Non-accrual loans                                                    |  | $            | 124,839 |   |                  | $ | 119,030 |              |  | $ | 126,537 |  
|Restructured loans                                                   |  |              | 45      |   |                  |   | 479     |              |  |   | 516     |  
|                                                                     |  |              |         |   |                  |   |         |              |  |   |         |  
|Total non-performing loans                                           |  |              | 124,884 |   |                  |   | 119,509 |              |  |   | 127,053 |  
|Other real estate owned                                              |  |              | 14,667  |   |                  |   | 17,476  |              |  |   | 11,511  |  
|Non-performing investments                                           |  |              |        |   |                  |   |        |              |  |   | 10,395  |  
|                                                                     |  |              |         |   |                  |   |         |              |  |   |         |  
|Total non-performing assets                                          |  | $            | 139,551 |   |                  | $ | 136,985 |              |  | $ | 148,959 |  
|                                                                     |  |              |         |   |                  |   |         |              |  |   |         |  
|Loans 90 days or more past due and still accruing interest           |  | $            | 11,858  |   |                  | $ | 27,987  |              |  | $ | 25,848  |  
|Non-performing loans to total loans                                  |  |              | 1.11    | % |                  |   | 1.07    | %            |  |   | 1.17    | %
|Non-performing assets to total loans plus other real estate owned    |  |              | 1.24    |   |                  |   | 1.23    |              |  |   | 1.38    |  
|Allowance for loan losses to total non-performing loans              |  |              | 115.79  |   |                  |   | 120.88  |              |  |   | 120.06  |  
|Loans 90 days or more past due and not on non-accrual to total loans |  |              | .11     |   |                  |   | .25     |              |  |   | .24     |  

Performing loans where some concerns exist as to the ability of the borrower to comply with present loan repayment
terms, excluding non-performing loans, approximated $131,569 and $140,220 at June 30, 2006 and December 31, 2005, respectively, and are being closely monitored by management and the Boards of Directors of the subsidiaries. The amounts
included in these loans resulted from an evaluation, on a loan-by-loan basis, of loans classified as doubtful and substandard but are not included in the non-performing loan category. The classification of these loans,
however, does not imply that management expects losses on each of these loans, but believes that a higher level of scrutiny is prudent under the circumstances. These loans require close monitoring despite the fact that they are currently performing.
Such classifications relate to specific concerns relating to each individual borrower and do not relate to any concentrated risk elements common to all loans in this group.

For the six months ended June 30, 2006, the amount of interest income that would have been recorded under the original loan terms for total loans classified as non-accrual and restructured was $5,676. The amount
actually collected and recorded, as interest income for these loans, was $1,486, which included $1,033 of interest from the collection of previously recorded non-accrual loans that were secured by pools of commercial leases.

Included in nonaccrual loans are $15,438 at June 30, 2006 and $20,400 at December 31, 2005 of loans that are secured by pools of commercial leases for
which payment is over 90 days past due. These loans are guaranteed by surety bonds. Sky Financial is engaged in litigation with the insurance companies to enforce their payment obligations, as are a number of other banks nationwide. These
non-accrual loans are currently reflected in the consolidated balance sheet at the amount of the unpaid balance, under contractual terms. After consultation with its counsel as to the strength of its position, Sky Financial believes that the credits
are well secured and that the prospects for recovery of its unpaid balance is probable.



30



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##### Table of Contents

Allowance for Credit Losses

The table below summarizes the changes in the allowance for credit losses:



|                                                                               |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|------------------------------------------------------------------------------ |  | -------------------------- | ------- | - | ------------------------ | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                                                               |  | Three Months EndedJune 30, |         |   | Six Months EndedJune 30, |  
|                                                                               |  | 2006                       |         |   | 2005                     |   |         | 2006 |  |   | 2005    |  
|Balance of allowance at beginning of period                                    |  | $                          | 143,383 |   |                          | $ | 150,122 |      |  | $ | 144,461 |   |  | $ | 151,389 |  
|                                                                               |  |                            |         |  
|Loans charged-off:                                                             |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Real estate                                                                    |  |                            | (3,856  | ) |                          |   | (2,722  | )    |  |   | (7,962  | ) |  |   | (12,472 | )
|Commercial and agricultural                                                    |  |                            | (4,883  | ) |                          |   | (2,299  | )    |  |   | (7,301  | ) |  |   | (20,555 | )
|Installment and credit card                                                    |  |                            | (2,886  | ) |                          |   | (3,555  | )    |  |   | (6,762  | ) |  |   | (9,323  | )
|Other loans                                                                    |  |                            | (40     | ) |                          |   | (52     | )    |  |   | (320    | ) |  |   | (165    | )
|                                                                               |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Total loans charged-off                                                        |  |                            | (11,665 | ) |                          |   | (8,628  | )    |  |   | (22,345 | ) |  |   | (42,515 | )
|                                                                               |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Recoveries                                                                     |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Real estate                                                                    |  |                            | 804     |   |                          |   | 1,205   |      |  |   | 1,077   |   |  |   | 1,499   |  
|Commercial and agricultural                                                    |  |                            | 301     |   |                          |   | 322     |      |  |   | 445     |   |  |   | 655     |  
|Installment and credit card                                                    |  |                            | 2,229   |   |                          |   | 1,207   |      |  |   | 4,273   |   |  |   | 2,600   |  
|Other loans                                                                    |  |                            | 61      |   |                          |   | 77      |      |  |   | 249     |   |  |   | 196     |  
|                                                                               |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Total recoveries                                                               |  |                            | 3,395   |   |                          |   | 2,811   |      |  |   | 6,044   |   |  |   | 4,950   |  
|                                                                               |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Net loans charged-off                                                          |  |                            | (8,270  | ) |                          |   | (5,817  | )    |  |   | (16,301 | ) |  |   | (37,565 | )
|Provision for credit losses                                                    |  |                            | 9,476   |   |                          |   | 5,894   |      |  |   | 16,630  |   |  |   | 36,717  |  
|Reserve of acquired institution                                                |  |                            |         |   |                          |   | 2,361   |      |  |   |         |   |  |   | 2,361   |  
|Transfer to allowance for unfunded commitments and letters of credit and other |  |                            | 12      |   |                          |   | (17     | )    |  |   | (189    | ) |  |   | (359    | )
|                                                                               |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Balance of allowance at end of period                                          |  | $                          | 144,601 |   |                          | $ | 152,543 |      |  | $ | 144,601 |   |  | $ | 152,543 |  
|                                                                               |  |                            |         |   |                          |   |         |      |  |   |         |   |  |   |         |  
|Ratio of net charge-offs to average loans outstanding                          |  |                            | 0.30    | % |                          |   | 0.22    | %    |  |   | 0.29    | % |  |   | 0.71    | %

At June 30, 2006 and December 31, 2005, an allowance for unfunded commitments and letters of credit of
$667 and $279 was included in accrued interest payable and other liabilities.

Sky Financial maintains an allowance for credit losses at a level adequate
to absorb managements estimate of probable losses inherent in the loan portfolio. The allowance is comprised of a general allowance, a specific allowance for identified problem loans and an unallocated allowance.

The general allowance is determined by applying estimated loss factors to the credit exposures from outstanding loans. For construction, commercial and commercial real
estate loans, loss factors are applied based on internal risk grades of these loans. For residential real estate, installment, credit card and other loans, loss factors are applied on a portfolio basis. Loss factors are based on Sky Financials
historical loss experience and are reviewed for modification on a quarterly basis, along with other factors affecting the collectibility of the loan portfolio.

Specific allowances are established for all classified loans, where management has determined that, due to identified significant conditions, it is probable that Sky Financial will be unable to collect all amounts due according to the
contractual terms of the loan agreement.

The unallocated allowance recognizes the estimation risk associated with the allocated general and specific
allowances and incorporates managements evaluation of existing conditions that are not included in the allocated allowance determinations. These conditions are reviewed quarterly by management and include general economic conditions, credit
quality trends, and internal loan review and regulatory examination findings.



31



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##### Table of Contents

The following table sets forth Sky Financials allocation of the allowance for credit losses as of June 30,
2006 and December 31, 2005.



|                                       |  |              |         |                 |   |        
|-------------------------------------- |  | ------------ | ------- | --------------- | - | -------
|                                       |  | June 30,2006 |         | December 312005
|Specific:                              |  |              |         |                 |   |        
|Construction                           |  | $            | 82      |                 | $ |       
|Real estate                            |  |              | 4,619   |                 |   | 2,541  
|Commercial, financial and agricultural |  |              | 6,308   |                 |   | 5,122  
|                                       |  |              |         |                 |   |        
|Sub-total                              |  |              | 11,009  |                 |   | 7,663  
|General                                |  |              |         |                 |   |        
|Construction                           |  |              | 6,538   |                 |   | 5,605  
|Real estate                            |  |              | 53,154  |                 |   | 54,238 
|Commercial, financial and agricultural |  |              | 42,119  |                 |   | 43,922 
|Installment and credit card            |  |              | 20,521  |                 |   | 21,846 
|                                       |  |              |         |                 |   |        
|Sub-total                              |  |              | 122,332 |                 |   | 125,611
|                                       |  |              |         |                 |   |        
|Total allocated                        |  |              | 133,341 |                 |   | 133,274
|Unallocated                            |  |              | 11,260  |                 |   | 11,187 
|                                       |  |              |         |                 |   |        
|Total                                  |  | $            | 144,601 |                 | $ | 144,461
|                                       |  |              |         |                 |   |        

The following table gives the percent of loans in each category to total loans:



|                                       |  |              |   |  |                  |  
|-------------------------------------- |  | ------------ | - |  | ---------------- | -
|                                       |  | June 30,2006 |   |  | December 31,2005 |  
|Construction                           |  | 9.8          | % |  | 9.1              | %
|Real estate                            |  | 56.6         |   |  | 57.5             |  
|Commercial, financial and agricultural |  | 27.4         |   |  | 27.1             |  
|Installment and credit card            |  | 6.2          |   |  | 6.3              |  
|                                       |  |              |   |  |                  |  
|Total                                  |  | 100.0        | % |  | 100.0            | %
|                                       |  |              |   |  |                  |  

Liquidity and Capital Resources

Management of liquidity is of growing importance to the banking industry. The liquidity of a financial institution reflects its ability to meet loan requests, to accommodate possible outflows in deposits and to take
advantage of interest rate market opportunities. The ability of a financial institution to meet its current financial obligations is a function of balance sheet structure, the ability to liquidate assets, and the availability of alternative sources
of funds. To meet the needs of the clients and to manage the risk of the bank, financial institutions have developed innovative ways to meet clients needs while at the same time manage both liquidity and interest rate risk. This is being done
through liquidity management and the balance of deposit growth and alternative sources of borrowing.

Certificates of deposit provide Sky Financial with a
dependable source of funding. However, market pricing can be highly competitive and this source of funds must be prudently managed. As of June 30, 2006, a total of $4,036,021 of contractual time deposits would mature in the next twelve months.
The maturities are reasonably disbursed across the year and there are no unusual concentrations of individual clients. At Sky Financial, time deposit maturities are monitored through the corporate Asset/ Liability Committee (ALCO). Maturing balances
are summarized by month, original term and existing rate within each of the eight regional market areas. Heavy maturity periods are monitored closely and proactive marketing plans are created that address both the client and Sky Financials
needs and preferences. Regional management along with funds management meets weekly to discuss general economic and market conditions. During this meeting, each region reports the results of the prior weeks pricing and promotional



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efforts. Each region then determines its rates for the coming week. Regional pricing allows Sky Financial to attract
deposits at the most efficient cost available. Retained time deposits are monitored and the percent retained is reported monthly to ALCO.

Management of
Sky Financial expects that a significant portion of the scheduled maturities will be retained throughout 2006 and into the first six months of 2007. In the unlikely event that these are not retained by Sky Financial, a minimum liquidity ratio has
been established at 10% of non-collateralized liabilities. This 10% ratio consists of readily marketable securities and unused borrowing capacity. At least 8% of the assets must be in unencumbered marketable assets. In addition, Sky Financial has a
standing contingent liquidity management plan that prioritizes the steps needed to compensate for temporary disruptions in liquidity.

In addition to
maintaining a stable core deposit base, Sky Financials banking subsidiary maintains adequate liquidity primarily through the use of investment securities and unused borrowing capacity. At June 30, 2006, securities and other short term
investments with maturities of one year or less totaled $39,788. In addition, the mortgage-backed securities provide an estimated cash flow of approximately $500,799 over a twelve-month timeframe. The banking subsidiary is a member of the Federal
Home Loan Bank (FHLB). The FHLB provides a reliable source of funds over and above retail deposits. As of June 30, 2006, the banking subsidiary had total credit availability with the FHLB of $1,909,171 of which it had outstanding borrowings of
$1,508,218.

Sky Financial maintains a $100,000 line of credit with a group of unaffiliated banks that expires May 25, 2007. As of June 30, 2006
and December 31, 2005, Sky Financial had no outstanding balances on the line of credit.

Sky Financial enters into derivative contracts under which it
is required to either receive cash or pay cash to counterparties depending on changes in interest rates. Derivative contracts are carried at their fair value on the consolidated balance sheet with the fair value representing the net present value of
expected future cash receipts or payments based on market interest rates as of the balance sheet date. The contracts are primarily interest rate swaps and cash is settled quarterly.

A schedule of significant commitments at June 30, 2006 follows:



|                             |  |   |          
|---------------------------- |  | - | ---------
|Commitments to extend credit |  | $ | 3,492,814
|Standby letters of credit    |  |   | 227,334  
|Letters of credit            |  |   | 1,479    

Since Sky Financial is a holding company and does not conduct operations, its primary sources of liquidity are
dividends paid to it by its banking subsidiary and borrowings from outside sources. For the banking subsidiary, regulatory approval is required in order to pay dividends in excess of the subsidiarys earnings retained for the current year plus
retained net profits for the prior two years. As a result of these restrictions, dividends that could be paid to Sky Financial by its bank subsidiary, without prior regulatory approval, were limited to $196,803 at June 30, 2006.

Asset/Liability Management

Closely related to liquidity management
is the management of interest rate risk. Sky Financial manages its rate sensitivity position to avoid wide swings in its net interest margin due to changes in market rates. At June 30, 2006, Sky Financials gap position, the difference
between the dollar value of interest rate sensitive assets and interest rate sensitive liabilities, was a positive 105.1% for six months and a negative 92.4% for one year and remained within Sky Financials Asset/Liability Committee (ALCO)
guidelines. Therefore Sky Financial does not expect to experience any significant fluctuations in its net interest margin as a consequence of changes in market rates. See also Item. 3, Quantitative and Qualitative Disclosures About Market
Risk.

Forward-Looking Statements

This report
includes forward-looking statements by Sky Financial relating to such matters as anticipated operating results, credit quality expectations, prospects for new lines of business, technological developments, economic trends (including interest rates),
acquisition, reorganization and divestiture transactions and similar matters. Such



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statements are based upon the current beliefs and expectations of Sky Financials management and are subject to
risks and uncertainties. While Sky Financial believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could prove to be inaccurate, and accordingly, actual results and experience
could differ materially from the anticipated results or other expectations expressed by Sky Financial in its forward-looking statements. Factors that could cause actual results or experience to differ from results discussed in the forward-looking
statements include, but are not limited to: economic conditions; volatility and direction of market interest rates; capital investment in and operating results of non-banking business ventures of Sky Financial; governmental legislation and
regulation; material unforeseen changes in the financial condition or results of operations of Sky Financials customers; customer reaction to and unforeseen complications with respect to Sky Financials integration of acquisitions;
difficulties in realizing expected cost savings from acquisitions; difficulties associated with data conversions in acquisitions; and other risks identified from time-to- time in Sky Financials other public documents on file with the
Securities and Exchange Commission. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements, and the purpose of this paragraph is to secure the use of the safe harbor provisions.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 contains
important requirements for public companies in the area of financial disclosure, internal controls and corporate governance. In accordance with the requirements of the Sarbanes-Oxley Act, written certifications for this quarterly report on Form 10-Q
by the chief executive officer and the chief financial officer accompany this report as filed with the SEC. See Controls and Procedures for Sky Financials evaluation of disclosure controls and procedures.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk that a financial
institutions earnings and capital, or its ability to meet its business objectives, will be adversely affected by movements in market rates or prices such as interest rates, foreign exchange rates, equity prices, credit spreads and/or commodity
prices. Within Sky Financial, the dominant market risk exposure is changes in interest rates. The negative effect of this exposure is felt through the net interest margin, mortgage banking revenues and the market value of various assets and
liabilities.

Sky Financial manages market risk through its Asset/Liability Committee (ALCO) at the consolidated level. This committee monitors interest
rate risk through sensitivity analysis, whereby it measures potential changes in future earnings and the fair market values of financial instruments that may result from one or more hypothetical changes in interest rates. This analysis is performed
by estimating the expected cash flows of Sky Financials financial instruments using interest rates in effect at June 30, 2006 and December 31, 2005. For the fair value estimates, the cash flows are then discounted to year end to
arrive at an estimated present value of Sky Financials financial instruments. Hypothetical changes in interest rates are then applied to the financial instruments, and the cash flows and fair values are again estimated using these hypothetical
rates. For the net interest income estimates, the hypothetical rates are applied to the financial instruments based on the assumed cash flows. Sky Financial applied these interest rate shocks to its financial instruments up 200,100 and 50 basis
points and down 50, 100 and 200 basis points.

The following table presents the potential ratio of Sky Financials interest rate sensitive assets
(i.e. assets that will mature or reprice within a specific time period) divided by its interest rate sensitive liabilities (i.e. liabilities that will mature or reprice within a specific time period), commonly referred to as the interest rate
sensitivity gap or gap, over a six-month time period and a twelve-month time period.



|             |  |              |   |  |         |   |  |               |  
|------------ |  | ------------ | - |  | ------- | - |  | ------------- | -
|             |  | June 30,2006 |   |  | ALCOMax |   |  | GuidelinesMin |  
|Six Month    |  | 105.1        | % |  | 125     | % |  | 95            | %
|Twelve Month |  | 92.4         | % |  | 125     | % |  | 90            | %



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The following table presents an analysis of Sky Financials sensitivity to changes in market rates based on annual
net interest income and the economic value of equity (EVE) due to sudden and sustained changes in market rates.



|                                    |  |              |   |  |                  |   |  |                |   
|----------------------------------- |  | ------------ | - |  | ---------------- | - |  | -------------- | --
|                                    |  | June 30,2006 |   |  | December 31,2005 |   |  | ALCOGuidelines |   
|One Year Net Interest Income Change |  |              |   |  |                  |   |  |                |   
|+200 Basis points                   |  | 1.3          | % |  | 1.8              | % |  | (10.0          | )%
|+100 Basis points                   |  | 1.0          |   |  | 1.0              |   |  | (5.0           | ) 
|+50 Basis points                    |  | 0.6          |   |  | N/A              |   |  | N/A            |   
|- 50 Basis points                   |  | (0.7         | ) |  | N/A              |   |  | N/A            |   
|-100 Basis points                   |  | (1.8         | ) |  | (2.0             | ) |  | (5.0           | ) 
|-200 Basis points                   |  | (4.8         | ) |  | (5.8             | ) |  | (10.0          | ) 
|                                    |  |              |  
|Economic Value of Equity            |  |              |   |  |                  |   |  |                |   
|+200 Basis points                   |  | (12.1        | ) |  | (11.3            | ) |  | (15.0          | ) 
|+100 Basis points                   |  | (5.3         | ) |  | (5.2             | ) |  | (10.0          | ) 
|+50 Basis points                    |  | (2.7         | ) |  | N/A              |   |  | N/A            |   
|- 50 Basis points                   |  | 2.7          |   |  | N/A              |   |  | N/A            |   
|-100 Basis points                   |  | 4.5          |   |  | 3.2              |   |  | (10.0          | ) 
|-200 Basis points                   |  | 6.2          |   |  | 3.6              |   |  | (15.0          | ) 

The projected volatility of net interest income and the economic value of equity at June 30, 2006 and
December 31, 2005 fall within the ALCO guidelines.

The preceding analysis is based on numerous assumptions, including relative levels of market
interest rates, loan prepayments and reactions of depositors to changes in interest rates, and should not be relied upon as being indicative of actual results. Further, the analysis does not necessarily contemplate all actions Sky Financial may
undertake in response to changes in interest rates.

Sky Financial also utilizes interest rate swaps and caps to effectively manage its interest rate risk.
At June 30, 2006, the fair values of Sky Financials derivative arrangements aggregated $(7,272) on contracts with notional amounts of $510,785.

.
Item 4. Controls and Procedures

Sky Financial maintains disclosure controls and procedures designed to ensure that the
information Sky Financial must disclose in its filings with the Securities and Exchange Commission is recorded, processed, summarized and reported accurately and on a timely basis. Sky Financials management carried out an evaluation, under the
supervision and with the participation of the chief executive officer and the chief financial officer, of the effectiveness of the design and operation of Sky Financials disclosure controls and procedures (as such term is defined in Rules
13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2006, pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the chief executive officer along with the chief financial officer concluded that Sky Financials
disclosure controls and procedures as of June 30, 2006, are effective.

Changes in Internal Control over Financial Reporting

There have not been any changes in Sky Financials internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred
during Sky Financials most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, Sky Financials internal control over financial reporting.



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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

In re Commercial Money Center, Inc. Equipment Lease Litigationin the U. S. District
Court for the Northern District of Ohio, Eastern Division, MDL Case No. 1:02-CV-16000

Between August 2000 and December 2001, Sky Bank and two of
its predecessor banks provided financing to a commercial borrower and its affiliated entities for the purchase of six separate portfolios of commercial lease pools, and a warehouse line of credit to finance lease pools. These loans are secured by
assignments of the payment streams from the underlying leases, surety bonds or insurance policies, and a limited guarantee from the sole member of the commercial borrower.

Upon default of these commercial loans, Sky Bank (and its predecessors) made demand for payment from Illinois Union Insurance Company (IU), RLI Insurance Company (RLI), and Royal Indemnity
Company (Royal) under the relevant surety bonds and insurance policies. IU, RLI, and Royal (collectively, the Sureties) have failed to make the payments required under the surety bonds and insurance policies. As a result, in
the spring of 2002, Sky and its predecessors filed suit against each of the Sureties seeking to enforce Sky Banks rights under the surety bonds and insurance policies issued by the Sureties in connection with the commercial lease pools.
Skys complaints claim breach of contract, bad faith and allege that the Sureties are liable for the payments due to Sky under the terms of the bonds and are estopped from asserting fraud as a defense to paying any claims under the bonds. In
October, 2002, the suits were consolidated for pretrial purposes with more than 35 other lawsuits involving similar claims in the United States District Court for the Northern District of Ohio, Eastern Division, under the Federal Multi-district
Litigation (MDL) Rules.

The key defense of the Sureties in denying Sky Banks claims under the surety bonds is that they were
fraudulently induced by the originator of the commercial leases to issue the surety bonds in the first instance. The Sureties have also asserted related defenses that the underlying equipment leases are invalid, usurious, or otherwise unenforceable.
Sky Bank believes that none of these defenses can defeat Sky Banks claims under the surety bonds, which, in the view of Sky Bank, provide for absolute and unconditional guarantees of payment. Moreover, Sky Bank believes that the Sureties are
responsible to Sky Bank, as the Obligee or Named Insured under the bonds, for the underwriting of the lessees and leases, including all issues of fraud, and that the Sureties waived any defense of fraud to claims under the bonds.

On December 21, 2005, Sky sold and assigned to a third party, without recourse, all of its rights and interests in three loans secured by commercial lease pools and
surety bonds issued by Royal. On March 31, 2006, Sky and IU settled in full its litigation pertaining to two loans secured by pools of leases and insurance policies issued by IU. The aggregate principal balance of the three loans sold to a
third party and the two loans which were settled was $14.2 million, and the aggregate proceeds received by Sky in the sale and the settlement was $14.9 million.

With respect to the remaining pool and the warehouse line of credit secured by surety bonds issued by RLI, which has a remaining principal balance of $15.4 million, Sky has amended its complaint and expects to proceed with pretrial
discovery and motion practice in the MDL court in anticipation of trial.

Sky Financial has reviewed the relevant matters of fact and law with its special
counsel and believes that it has substantial and meritorious claims against the remaining Surety. Sky Financial has and will continue to vigorously assert all the rights and remedies available to it to obtain payment under the bonds. While the
ultimate outcome of this matter cannot be determined at this time, Sky Financial management does not believe that the outcome of these pending legal proceedings will materially affect the consolidated financial position or results of operations of
Sky Financial.

******



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Sky Financial and its affiliates are, from time to time, involved in various lawsuits and claims which arise in the
normal course of business. Some of these proceedings seek relief or damages that are substantial, and in some instances are filed as class actions. Nonetheless, based upon the advice of counsel, management is of the opinion that any liabilities that
may result from these lawsuits and claims will not have a material adverse effect on the consolidated financial condition or results of operations of Sky Financial.

Item 1A. Risk Factors

There were no material changes to the risk factors as presented in Sky Financials annual
report on Form 10-K for the year ended December 31, 2005.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds



| | (a) | Not applicable
| | --- | --------------



| | (b) | Not applicable
| | --- | --------------



| | (c) | Purchases of Equity Securities by the Issuer and Affiliated Purchasers
| | --- | ----------------------------------------------------------------------



| |  | None
| |  | ----

Item 3. Defaults Upon Senior Securities

Not applicable.



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Item 4. Submission of Matters to a Vote of Security Holders

None

Item 5. Other Information

None

Item 6. Exhibits

Exhibits



|            |  |                                                                                                                                                                                                                                                            
|----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                
|(11.1)      |  | Statement Re Computation of Earnings Per Common Share The information required by this exhibit is incorporated herein by reference from the information contained in Note 9 Earnings Per Share on page 13 of Sky Financials Form 10-Q for June 30,
2006.
|            | 
|(31.1)      |  | Rule 13a - 14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                                                                                                                        
|            | 
|(31.2)      |  | Rule 13a - 14(a)/15d-14(a) Certification of Chief Financial Officer                                                                                                                                                                                        
|            | 
|(32.1)*     |  | Section 1350 Certification of Chief Executive Officer.                                                                                                                                                                                                     
|            | 
|(32.2)*     |  | Section 1350 Certification of Chief Financial Officer.                                                                                                                                                                                                     

---

|* | This exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any
filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



|                                                  
|--------------------------------------------------
|SKY FINANCIAL GROUP, INC.                         
|                                                  
|/s/ Kevin T. Thompson                             
|Kevin T. Thompson                                 
|Executive Vice President / Chief Financial Officer
|                                                  
|DATE: July 28, 2006                               
|SKY FINANCIAL GROUP, INC.                         



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EXHIBIT INDEX



|            |  |                                                                                                                                                                                                      
|----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                          
|(11.1)      |  | Statement Re Computation of Earnings Per Common Share                                                                                                                                                
|            |  | The information required by this exhibit is incorporated herein by reference from the information contained in Note 9 Earnings Per Share on page 13 of
Sky Financials Form 10-Q for June 30, 2006.
|            | 
|(31.1)      |  | Rule 13a - 14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                                                                  
|            | 
|(31.2)      |  | Rule 13a - 14(a)/15d-14(a) Certification of Chief Financial Officer                                                                                                                                  
|            | 
|(32.1)*     |  | Section 1350 Certification of Chief Executive Officer.                                                                                                                                               
|            | 
|(32.2)*     |  | Section 1350 Certification of Chief Financial Officer.                                                                                                                                               

---

|* | This exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any
filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



40