**Exhibit 99.1****Huntington Bancshares Incorporated****Condensed Consolidated Balance Sheets*****(Unaudited)***               **2007** 2006*(in thousands, except number of shares)* **June 30,** December 31, June 30,   **Assets**            Cash and due from banks **$****818,877**  $1,080,163  $876,121 Federal funds sold and securitiespurchased under resale agreements  **857,080**   440,584   365,592 Interest bearing deposits in banks  **271,133**   74,168   37,576 Trading account securities  **619,836**   36,056   113,376 Loans held for sale  **348,272**   270,422   298,871 Investment securities  **3,863,182**   4,362,924   5,124,682 Loans and leases  **26,811,513**   26,153,425   26,354,581 Allowance for loan and lease losses  **(307,519****)**  (272,068)  (287,517)   Net loans and leases  **26,503,994**   25,881,357   26,067,064    Bank owned life insurance  **1,107,042**   1,089,028   1,070,909 Premises and equipment  **398,436**   372,772   365,763 Goodwill  **569,738**   570,876   571,697 Other intangible assets  **54,646**   59,487   64,141 Accrued income and other assets  **1,008,450**   1,091,182   1,309,985    **Total Assets** **$****36,420,686**  $35,329,019  $36,265,777                 **Liabilities and Shareholders’ EquityLiabilities**            Deposits **$****24,599,912**  $25,047,770  $24,592,932 Short-term borrowings  **2,860,939**   1,676,189   2,125,932 Federal Home Loan Bank advances  **1,397,398**   996,821   1,271,678 Other long-term debt  **2,016,199**   2,229,140   2,716,784 Subordinated notes  **1,494,197**   1,286,657   1,255,278 Accrued expenses and other liabilities  **987,900**   1,078,116   1,364,017    **Total Liabilities**  **33,356,545**   32,314,693   33,326,621                 **Shareholders’ equity**            Preferred stock — authorized 6,617,808 shares;none outstanding  —   —   — Common stock— No par value and authorized 500,000,000 shares;issued 257,866,255 shares; outstanding 235,474,366 and237,361,333 shares, respectively.  —   2,560,569   2,552,094 Par value of $0.01 and authorized 1,000,000,000 shares atJune 30, 2007; issued 257,866,255 shares; outstanding236,244,063 shares  **2,579**   —   — Capital surplus  **2,565,185**   —   — Treasury shares at cost, 21,622,192; 22,391,889 and20,504,922, respectively  **(489,633****)**  (506,946)  (457,758)Accumulated other comprehensive loss:            Unrealized (losses) gains on investment securities  **(17,243****)**  14,254   (69,723)Unrealized gains on cash flow hedging derivatives  **18,158**   17,008   28,915 Pension and other postretirement benefit adjustments  **(81,705****)**  (86,328)  (3,283)Retained earnings  **1,066,800**   1,015,769   888,911    **Total Shareholders’ Equity**  **3,064,141**   3,014,326   2,939,156    **Total Liabilities and Shareholders’ Equity** **$****36,420,686**  $35,329,019  $36,265,777         *See notes to unaudited condensed consolidated financial statements*
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**Huntington Bancshares Incorporated****Condensed Consolidated Statements of Income***(Unaudited)*                   Three Months Ended Six Months Ended  June 30, June 30,*(in thousands, except per share amounts)* **2007** 2006 **2007** 2006 Interest and fee income                Loans and leases                Taxable **$****466,904**  $445,924  **$****928,045**  $845,270 Tax-exempt  **114**   520   **585**   1,029 Investment securities                Taxable  **49,684**   60,852   **104,799**   112,960 Tax-exempt  **6,528**   5,894   **12,621**   11,606 Other  **19,231**   8,713   **31,360**   15,825  Total interest income  **542,461**   521,903   **1,077,410**   986,690  Interest expenses                Deposits  **198,108**   173,032   **394,831**   321,346 Short-term borrowings  **23,271**   20,969   **43,108**   35,634 Federal Home Loan Bank advances  **16,009**   17,077   **28,519**   31,565 Subordinated notes and other long-term debt  **51,682**   48,630   **102,006**   92,270  Total interest expense  **289,070**   259,708   **568,464**   480,815  Net interest income  **253,391**   262,195   **508,946**   505,875 Provision for credit losses  **60,133**   15,745   **89,539**   35,285  **Net interest income after provision for credit losses**  **193,258**   246,450   **419,407**   470,590  Service charges on deposit accounts  **50,017**   47,225   **94,810**   88,447 Trust services  **26,764**   22,676   **52,658**   43,954 Brokerage and insurance income  **17,199**   14,345   **33,281**   29,538 Other service charges and fees  **14,923**   13,072   **28,131**   24,581 Bank owned life insurance income  **10,904**   10,604   **21,755**   20,846 Mortgage banking income  **7,122**   13,616   **16,473**   26,810 Securities losses  **(5,139****)**  (35)  **(5,035****)**  (55)Other income  **34,403**   41,516   **59,297**   88,432  **Total non-interest income**  **156,193**   163,019   **301,370**   322,553  Personnel costs  **135,191**   137,904   **269,830**   269,461 Outside data processing and other services  **25,701**   19,569   **47,515**   39,420 Net occupancy  **19,417**   17,927   **39,325**   35,893 Equipment  **17,157**   18,009   **35,376**   34,512 Marketing  **8,986**   10,374   **16,682**   17,675 Professional services  **8,101**   6,292   **14,583**   11,657 Telecommunications  **4,577**   4,990   **8,703**   9,815 Printing and supplies  **3,672**   3,764   **6,914**   6,838 Amortization of intangibles  **2,519**   2,992   **5,039**   4,067 Other expense  **19,334**   30,538   **42,760**   61,436  **Total non-interest expense**  **244,655**   252,359   **486,727**   490,774  Income before income taxes  **104,796**   157,110   **234,050**   302,369 Provision for income taxes  **24,275**   45,506   **57,803**   86,309  **Net income** **$****80,521**  $111,604  **$****176,247**  $216,060   Average common shares — basic  **236,032**   241,729   **235,809**   236,349 Average common shares — diluted  **239,008**   244,538   **238,881**   239,451  **Per common share**                Net income — basic **$****0.34**  $0.46  **$****0.75**  $0.91 Net income — diluted  **0.34**   0.46   **0.74**   0.90 Cash dividends declared  **0.265**   0.250   **0.530**   0.500      *See notes to unaudited condensed consolidated financial statements*
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**Huntington Bancshares Incorporated****Condensed Consolidated Statements of Changes in Shareholders’ Equity***(Unaudited)*                                                                       Accumulated                                   Other       Preferred Stock Common Stock Capital  Treasury Stock Comprehensive  Retained   *(in thousands)* Shares  Amount  Shares  Amount  Surplus  Shares  Amount  Loss  Earnings  Total Six Months Ended June 30, 2006:                                        Balance, beginning of period  —  $—   257,866  $2,491,326  $—   (33,760) $(693,576) $(22,093) $781,844  $2,557,501 Comprehensive Income:                                        Net income                                  216,060   216,060 Unrealized net losses on investment securitiesarising during the period, net of reclassification (1)for net realized losses, net of tax of ($19,461).                              (35,707)      (35,707)Unrealized gains on cash flow hedging derivatives,net of tax of $7,382.                              13,709       13,709                                          Total comprehensive income                                      194,062                                          Cumulative effect of change in accounting principlefor servicing financial assets, net of tax of $6,521                                  12,110   12,110 Cash dividends declared ($0.50 per share)                                  (121,103)  (121,103)Shares issued pursuant to acquisition              53,366       25,350   522,390           575,756 Recognition of the fair value of share-basedcompensation              8,547                       8,547 Treasury shares purchased                      (12,931)  (303,943)          (303,943)Stock options exercised              (1,196)      880   18,445           17,249 Other              51       (44)  (1,074)          (1,023)  Balance, end of period  —   —   257,866   2,552,094   —   (20,505)  (457,758)  (44,091)  888,911   2,939,156                                           **Six Months Ended June 30, 2007:**                                        **Balance, beginning of period**  **—**   **—**   **257,866**   **2,560,569**   **—**   **(22,392****)**  **(506,946****)**  **(55,066****)**  **1,015,769**   **3,014,326** **Comprehensive Income:**                                        **Net income**                                  **176,247**   **176,247** **Unrealized net losses on investment securities****arising during the period, net of reclassification **(1)****for net realized gains, net of tax of ($30,423)                              **(31,497****)**      **(31,497****)****Unrealized gains on cash flow hedging derivatives,net of tax of $619**                              **1,150**       **1,150** **Amortization included in net periodic benefit costs:**                                        **Net actuarial loss, net of tax of ($2,188)**                              **4,063**       **4,063** **Prior service costs, net of tax of ($108)**                              **200**       **200** **Transition obligation, net of tax of ($194)**                              **360**       **360**                                          **Total comprehensive income**                                      **150,523**                                          **Assignment of $0.01 par value per share for eachshare of Common Stock**              **(2,557,990****)**  **2,557,990**                   **—** **Cash dividends declared ($0.53 per share)**                                  **(125,216****)**  **(125,216****)****Recognition of the fair value of share-basedcompensation**                  **7,816**                   **7,816** **Stock options exercised**                  **(2,851****)**  **881**   **19,911**           **17,060** **Other**                  **2,230**   **(111****)**  **(2,598****)**          **(368****)**  **Balance, end of period**  —  $—   **257,866**  **$****2,579**  **$****2,565,185**   **(21,622****)** **$****(489,633****)** **$****(80,790****)** **$****1,066,800**  **$****3,064,141**  (1) Reclassification adjustments represent net unrealized gains or losses as ofDecember 31 of the prior year on investment securities that weresold during the current year. For the six months ended June 30, 2007 and 2006, the reclassification adjustments were $5,035,net of tax of ($1,762), and $55, net of tax of ($19), respectively.*See notes to unaudited condensed consolidated financial statements.*
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**Huntington Bancshares Incorporated****Condensed Consolidated Statements of Cash Flows*****(Unaudited)***           **Six Months Ended**  **June 30,***(in thousands)* **2007** **2006** **Operating activities**        Net income **$****176,247**  $216,060 Adjustments to reconcile net income to net cash provided by operating activites:        Provision for credit losses  **89,539**   35,285 Depreciation and amortization  **41,280**   61,345 Increase in accrued income taxes  **51,460**   9,085 Deferred income tax benefit  **(111,297****)**  (123,830)Net increase in trading account securities  **(583,780****)**  (27,290)Pension contribution  **—**   (29,800)Originations of loans held for sale  **(1,280,343****)**  (1,318,453)Principal payments on and proceeds from loans held for sale  **1,185,067**   1,313,926 Other, net  **(51,260****)**  (233,826) **Net cash provided by operating activities**  **(483,087****)**  (97,498)          **Investing activities**        Increase in interest bearing deposits in banks  **(123,345****)**  (12,089)Net cash received in acquisitions  **—**   66,507 Proceeds from:        Maturities and calls of investment securities  **242,945**   241,871 Sales of investment securities  **550,070**   376,263 Purchases of investment securities  **(340,837****)**  (1,024,048)Proceeds from sales of loans  **108,588**   — Net loan and lease originations, excluding sales  **(817,197****)**  (246,265)Proceeds from sale of operating lease assets  **23,031**   82,139 Purchases of premises and equipment  **(53,029****)**  (12,645)Other, net  **6,989**   (67) **Net cash used for investing activities**  **(402,785****)**  (528,334)          **Financing activities**        (Decrease) increase in deposits  **(442,428****)**  495,827 Increase in short-term borrowings  **1,184,750**   157,532 Proceeds from issuance of subordinated notes  **250,010**   250,000 Proceeds from Federal Home Loan Bank advances  **850,600**   2,162,050 Maturity/redemption of Federal Home Loan Bank advances  **(450,023****)**  (2,148,969)Proceeds from issuance of long-term debt  **—**   935,000 Maturity of long-term debt  **(240,099****)**  (635,549)Dividends paid on common stock  **(124,003****)**  (103,096)Repurchases of common stock  **—**   (303,943)Other, net  **12,275**   17,917  **Net cash provided by financing activities**  **1,041,082**   826,769  **Increase in cash and cash equivalents**  **155,210**   200,937 **Cash and cash equivalents at beginning of period**  **1,520,747**   1,040,776  **Cash and cash equivalents at end of period** **$****1,675,957**  $1,241,713           Supplemental disclosures:        Income taxes paid **$****169,822**  $194,505 Interest paid  **580,982**   463,979 Non-cash activities        Common stock dividends accrued, paid in subsequent quarter  **48,484**   46,884 Common stock and stock options issued for purchase acquisition  **—**   575,756 *See notes to unaudited condensed consolidated financial statements.*
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**Notes to Unaudited Condensed Consolidated Financial Statements****Note 1 – Basis of Presentation**     The accompanying unaudited condensed consolidated financial statements of HuntingtonBancshares Incorporated (Huntington or the Company) reflect all adjustments consisting of normalrecurring accruals, which are, in the opinion of Management, necessary for a fair presentation ofthe consolidated financial position, the results of operations, and cash flows for the periodspresented. These unaudited condensed consolidated financial statements have been preparedaccording to the rules and regulations of the Securities and Exchange Commission (SEC) and,therefore, certain information and footnote disclosures normally included in financial statementsprepared in accordance with accounting principles generally accepted in the United States (GAAP)have been omitted. The Notes to Consolidated Financial Statements appearing in Huntington’s 2006Annual Report on Form 10-K, (2006 Form 10-K), which include descriptions of significant accountingpolicies, as updated by the information contained in this report, should be read in conjunctionwith these interim financial statements.     On July 1, 2007, Huntington acquired Sky Financial Group, Inc. Accordingly, the balancespresented do not include the impact of the acquisition. See Note 3 for information regarding theacquisition.     Certain amounts in the prior-year’s financial statements have been reclassified to conform tothe 2007 presentation.     For statement of cash flows purposes, cash and cash equivalents are defined as the sum of“Cash and due from banks” and “Federal funds sold and securities purchased under resaleagreements.”**Note 2 – New Accounting Pronouncements****Financial Accounting Standards Board (FASB) Statement No. 158,*****Employer’s Accounting for DefinedBenefit Pension and Other Postretirement Plans — an amendment of FASB Statements No. 87, 88, 106,and 132R (Statement No. 158)***– In September 2006, the FASB issued Statement No. 158, as anamendment to FASB Statements No. 87, 88, 106, and 132R. Statement No. 158 requires an employer torecognize in its statement of financial position the funded status of its defined benefit plans andto recognize as a component of other comprehensive income, net of tax, any unrecognized transitionobligations and assets, the actuarial gains and losses, and prior service costs and credits thatarise during the period. The recognition provisions of Statement No. 158 are to be appliedprospectively and were effective for fiscal years ending after December 15, 2006. In addition,Statement No. 158 requires a fiscal year end measurement of plan assets and benefit obligations,eliminating the use of earlier measurement dates currently permissible. However, the newmeasurement date requirement will not be effective until fiscal years ended after December 15,2008. Currently, Huntington utilizes a measurement date of September 30th. The adoption ofStatement No. 158 as of December 31, 2006 resulted in a write-down of its pension asset by $125.1million, and decreased accumulated other comprehensive income by $83.0 million, net of taxes.**FASB Interpretation No. 48 (FIN 48),*****Accounting for Uncertainty in Income Taxes***– In July 2006, theFASB issued FIN 48, *Accounting for Uncertainty in Income Taxes*. This Interpretation of FASBStatement No. 109, *Accounting for Income Taxes*, contains guidance on the recognition andmeasurement of uncertain tax positions. Huntington adopted FIN 48 on January 1, 2007. Huntingtonrecognizes the impact of a tax position if it is more likely than not that it will be sustainedupon examination, based upon the technical merits of the position. The impact of this newpronouncement was not material to Huntington’s financial statements (See Note 9).**FASB Statement No. 157,*****Fair Value Measurements*****(Statement No. 157)**– In September 2006, the FASBissued Statement No. 157. This Statement establishes a common definition for fair value to beapplied to GAAP guidance requiring use of fair value, establishes a framework for measuring fairvalue, and expands disclosure about such fair value measurements. Statement No. 157 is effectivefor fiscal years beginning after November 15, 2007. Management is currently assessing the impactthis Statement will have on its consolidated financial statements.
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**FASBStatement No. 159,*****The Fair Value Option for Financial Assets and Financial Liabilities*****(Statement No. 159)**– In February 2007, the FASB issued Statement No. 159. This Statement permitsentities to choose to measure financial instruments and certain other financial assets andfinancial liabilities at fair value. This Statement is effective for fiscal years beginning afterNovember 15, 2007. Management is currently assessing the impact this Statement will have on itsconsolidated financial statements.**Note 3 – Acquisition of Sky Financial Group, Inc.**     On July 1, 2007, Huntington completed its merger with Sky Financial Group, Inc. (SkyFinancial) in a stock and cash transaction valued at $3.5 billion. Sky Financial operated over 330banking offices and over 400 ATMs and served communities in Ohio, Pennsylvania, Indiana, Michigan,and West Virginia.     Under the terms of the merger agreement, Sky Financial shareholders received 1.098 shares ofHuntington common stock, on a tax-free basis, and a cash payment of $3.023 for each share of SkyFinancial common stock. The assets and liabilities of the acquired entity were recorded on theCompany’s balance sheet at their fair values as of the acquisition date.     The following table shows the excess purchase price over carrying value of net assetsacquired, preliminary purchase price allocation, and resulting goodwill:     *(in thousands)* **July 1, 2007** Purchase price **$****3,519,213** Carrying value of net assets acquired  **(1,111,393****)** Excess of purchase price over carrying value of net assets acquired  **2,407,820**      Purchase accounting adjustments:    Loans and leases  **120,245** Accrued income and other assets  **(33,789****)**Deposits  **(13,057****)**Other borrowings  **4,267** Deferred federal income tax liability  **89,987** Accrued expenses and other liabilities  **73,819**  Goodwill and other intangible assets  **2,649,292** Less other intangible assets:    Core deposit intangible  **(357,000****)**Other identifiable intangible assets  **(115,000****)** Other intangible assets  **(472,000****)** Goodwill **$****2,177,292**       Of the $2.6 billion of acquired intangible assets, $0.4 billion was assigned to core depositintangible, and $0.1 billion was assigned to customer relationship intangibles. The core depositand other identifiable intangible assets have useful lives ranging from 10 to 15 years.     The cost to acquire Sky Financial has been allocated to the identifiable tangible andintangible assets acquired and liabilities assumed based on preliminary estimated fair values. Theallocation of the purchase price is subject to changes in the estimated fair values of assetsacquired and liabilities assumed as additional information becomes available and plans arefinalized. As such, it is not currently possible to report goodwill by segment.
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     The following table summarizes the estimated fair value of the net assets acquired on July 1,2007 related to the acquisition of Sky Financial:         *(in thousands)* **July 1, 2007**     Assets        Loans held for sale **$****81,188**     Securities and other earning assets  **852,209**     Loans and leases  **13,049,217**     Goodwill and other intangible assets  **2,649,292**     Accrued income and other assets  **822,247**      Total assets  **17,454,153**              Liabilities        Deposits  **12,850,629**     Borrowings  **866,175**     Accrued expenses and other liabilities  **218,136**      Total liabilities  **13,934,940**      **Purchase price** **$****3,519,213**      **Note 4 – Goodwill and Other Intangible Assets**     Goodwill by line of business as of June 30, 2007, was as follows:                       Regional Dealer     Treasury/ Huntington*(in thousands)* Banking Sales PFCMG Other Consolidated Balance, January 1, 2007 $535,855  **$****—**  $35,021  **$****—**  $570,876 Adjustments  209   **—**   (1,347)  —   (1,138) Balance, June 30, 2007 **$****536,064**  **$****—**  **$****33,674**  **$****—**  **$****569,738**       The change in goodwill for the six month period ended June 30, 2007, primarily related topurchase accounting adjustments from the December 31, 2006 acquisition of Unified Fund Services,Inc. and Unified Financial Securities, Inc. In accordance with FASB Statement No. 142, *Goodwilland Other Intangible Assets,*goodwill is not amortized, but is evaluated for impairment on anannual basis at September 30th of each year or whenever events or changes incircumstances indicate that the carrying value may not be recoverable.
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     At June 30, 2007, December 31, 2006 and June 30, 2006, Huntington’s other intangible assetsconsisted of the following:               **Gross** **Accumulated** **Net***(in thousands)* **Carrying Amount** **Amortization** **Carrying Value****June 30, 2007**            Leasehold purchased $23,655  $(20,038) $3,617 Core deposit intangible  45,000   (11,230)  33,770 Borrower relationship  6,570   (730)  5,840 Trust customers  11,430   (1,317)  10,113 Other  1,437   (131)  1,306    Total other intangible assets $88,092  $(33,446) $54,646               **December 31, 2006**            Leasehold purchased $23,655  $(19,631) $4,024 Core deposit intangible  45,000   (7,525)  37,475 Borrower relationship  6,570   (456)  6,114 Trust customers  11,430   (796)  10,634 Other  1,622   (382)  1,240    Total other intangible assets $88,277  $(28,790) $59,487               **June 30, 2006**            Leasehold purchased $23,655  $(19,224) $4,431 Core deposit intangible  45,000   (3,010)  41,990 Borrower relationship  6,570   (182)  6,388 Trust customers  11,430   (327)  11,103 Other  382   (153)  229    Total other intangible assets $87,037  $(22,896) $64,141       Amortization expense of other intangible assets for the three month periods ended June 30,2007 and 2006, was $2.5 million and $3.0 million, respectively. Amortization expense of otherintangible assets for the six month periods ended June 30, 2007 and 2006 was $5.0 million and $4.0million, respectively     Excluding the estimated amount that will be acquired with the acquisition of Sky Financial,the estimated amortization expense of other intangible assets for the remainder of 2007 and thenext five annual years are as follows:       Amortization*(in thousands)* Expense Fiscal year:    2007 $5,038 2008  8,888 2009  7,957 2010  7,132 2011  6,333 2012  4,982 
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**Note 5 – Loan Sales and Securitizations*****Automobile loans***     Huntington sold $117.9 million and $218.4 million of automobile loans in the second quarter of2007 and 2006, respectively, resulting in pre-tax gains of $0.9 million and $0.5 million, respectively. For thesix month periods ended June 30, 2007 and 2006, sales of automobile loans totaled $259.2 millionand $388.2 million, respectively, resulting in pre-tax gains of $2.1 million and $1.0 million, respectively.     Automobile loan servicing rights are acccounted for under the amortization provision of FASBStatement No. 156, *Accounting for Servicing of Financial Assets – an amendment of FASB StatementNo. 140*. A servicing asset is established at fair value at the time of the sale. The servicingasset is then amortized against servicing income. Impairment, if any, is recognized when carryingvalue exceeds the fair value as determined by calculating the present value of expected net futurecash flows. The primary risk characteristic for measuring servicing assets is the payoff rate ofthe underlying loan pools. Valuation calculations rely on the predicted payoff assumption and, ifactual payoff is quicker than expected, then future value would become impaired.     Changes in the carrying value of automobile loan servicing rights for the three and six monthperiods ended June 30, 2007 and 2006, and the fair value at the end of each period were as follows:                   Three Months Ended Six Months Ended  June 30, June 30,*(in thousands)* **2007** 2006 **2007** 2006   Carrying value, beginning of period **$****7,186**  $9,610  **$****7,916**  $10,805 New servicing assets  **874**   1,364   **1,900**   2,362 Amortization  **(1,781****)**  (1,989)  **(3,537****)**  (4,182)   Carrying value, end of period **$****6,279**  $8,985  **$****6,279**  $8,985                     Fair value, end of period **$****7,205**  $10,486  **$****7,205**  $10,486         Huntington has retained servicing responsibilities on sold automobile loans and receivesannual servicing fees from 0.55% to 1.00% and other ancillary fees of approximately 0.40% to 0.45%of the outstanding loan balances. Servicing income, net of amortization of capitalized servicingassets, amounted to $3.3 million and $3.4 million for the three month periods ended June 30, 2007and 2006, respectively. For the six month periods ended June 30, 2007 and 2006, servicing incomewas $6.4 million and $6.8 million, respectively.***Residential Mortgage Loans***     During the first quarter of 2007, Huntington sold $109.5 million of residential mortgage loansheld for investment, resulting in a net pre-tax gain of $0.5 million. There were no sales ofresidential mortgage loans held for investment in the second quarter of 2007 or the first sixmonths of 2006.
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     The following table is a summary of the changes in mortgage servicing right (MSR) fair valueduring the three and six month periods ended June 30, 2007 and 2006:                   Three Months Ended Six Months Ended  June 30, June 30,*(in thousands)* **2007** 2006 **2007** 2006   Fair value, beginning of period **$****134,845**   123,257   **131,104**   109,890 New servicing assets created  **8,990**   7,434   **17,426**   13,211 Servicing assets acquired  **—**   565   **—**   2,474 Change in fair value during the period due to:                Time decay (1)  **(1,123****)**  (1,062)  **(2,199****)**  (1,985)Payoffs (2)  **(3,326****)**  (2,231)  **(5,888****)**  (4,840)Changes in valuation inputs or assumptions (3)  **16,034**   8,281   **14,977**   17,494    **Fair value, end of period** **$****155,420**  $136,244  **$****155,420**  $136,244    (1) Represents decrease in value due to passage of time, including the impactfrom both regularly scheduled loan principal payments and partial loan paydowns. (2) Represents decrease in value associated with loans that paid off during theperiod. (3) Represents change in value resulting primarily from market-driven changesin interest rates.     MSRs do not trade in an active, open market with readily observable prices. While sales ofMSRs occur, the precise terms and conditions are typically not readily available. Therefore, thefair value of MSRs is estimated using a discounted future cash flow model. The model considersportfolio characteristics, contractually specified servicing fees and assumptions related toprepayments, delinquency rates, late charges, other ancillary revenues, costs to service, and othereconomic factors. Changes in the assumptions used may have a significant impact on the valuationof MSRs.     A summary of key assumptions and the sensitivity of the MSR value at June 30, 2007 to changesin these assumptions follows:                   Decline in fair value      due to      10% 20%      adverse adverse*(in thousands)* Actual change changeConstant pre-payment rate  10.95% $(6,383) $(12,292)Discount rate  9.39   (6,074)  (11,700)     MSR values are very sensitive to movements in interest rates as expected future net servicingincome depends on the projected outstanding principal balances of the underlying loans, which canbe greatly impacted by the level of prepayments. The Company hedges against changes in MSR fairvalue attributable to changes in interest rates through a combination of derivative instruments andtrading securities.     Below is a summary of servicing fee income, a component of mortgage banking income, earnedduring the three and six month periods ended June 30, 2007 and 2006.                   Three Months Ended Six Months Ended  June 30, June 30,*(in thousands)* **2007**  2006  **2007**  2006    Servicing fees **$****6,976**  $5,995  **$****13,796**  $11,920 Late fees  **640**   551   **1,348**   1,161 Ancillary fees  **273**   89   **528**   341    Total fee income **$****7,889**  $6,635  **$****15,672**  $13,422    
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**Note 6 — Investment Securities**     Listed below are the contractual maturities (under 1 year, 1-5 years, 6-10 years and over 10years) of investmentsecurities at June 30, 2007, December 31, 2006, and June 30, 2006:                           **June 30, 2007** December 31, 2006 June 30, 2006  **Amortized**     Amortized     Amortized  *(in thousands)* **Cost** **Fair Value** Cost Fair Value Cost Fair Value U.S. Treasury                        Under 1 year **$****200**  **$****201**  $800  $800  $699  $704 1-5 years  **548**   **546**   1,046   1,056   21,924   21,083 6-10 years  **—**   **—**   —   —   504   522 Over 10 years  **—**   **—**   —   —   —   —  **Total U.S. Treasury**  **748**   **747**   1,846   1,856   23,127   22,309  Federal agencies                        Mortgage backed securities                        Under 1 year  **2,896**   **2,888**   1,848   1,847   350   347 1-5 years  **11,110**   **11,105**   9,560   9,608   32,033   30,619 6-10 years  **3,501**   **3,476**   4,353   4,355   549   519 Over 10 years  **1,181,589**   **1,176,050**   1,261,423   1,265,651   1,252,384   1,194,850  **Total mortgage-backed Federal agencies**  **1,199,096**   **1,193,519**   1,277,184   1,281,461   1,285,316   1,226,335  Other agencies                        Under 1 year  **99,751**   **99,531**   —   —   45,000   44,284 1-5 years  **49,668**   **49,357**   149,819   149,853   249,604   237,742 6-10 years  **—**   **—**   98   96   50,000   45,922 Over 10 years  **—**   **—**   —   —   —   —  **Total other Federal agencies**  **149,419**   **148,888**   149,917   149,949   344,604   327,948  **Total Federal agencies**  **1,348,515**   **1,342,407**   1,427,101   1,431,410   1,629,920   1,554,283  Municipal securities                        Under 1 year  **45**   **45**   42   42   42   42 1-5 years  **9,650**   **9,541**   10,553   10,588   103   103 6-10 years  **168,481**   **165,195**   165,624   165,229   154,360   150,215 Over 10 years  **503,199**   **496,378**   410,248   415,564   430,118   421,243  **Total municipal securities**  **681,375**   **671,159**   586,467   591,423   584,623   571,603  Private label CMO                        Under 1 year  **—**   **—**   —   —   —   — 1-5 years  **—**   **—**   —   —   —   — 6-10 years  **—**   **—**   —   —   —   — Over 10 years  **727,026**   **723,515**   586,088   590,062   749,019   731,031  **Total private label CMO**  **727,026**   **723,515**   586,088   590,062   749,019   731,031  Asset backed securities                        Under 1 year  **—**   **—**   —   —   —   — 1-5 years  **30,000**   **30,000**   30,000   30,056   30,000   30,000 6-10 years  **—**   **—**   —   —   —   — Over 10 years  **933,778**   **926,599**   1,544,572   1,552,748   1,949,008   1,948,538  **Total asset backed securities**  **963,778**   **956,599**   1,574,572   1,582,804   1,979,008   1,978,538  OtherUnder 1 year  **5,600**   **5,594**   4,800   4,784   1,900   1,900 1-5 years  **2,747**   **2,736**   2,750   2,706   8,795   8,780 6-10 years  **844**   **833**   —   —   1,050   985 Over 10 years  **44**   **86**   44   86   44   43 Non-marketable equity securities  **152,071**   **152,071**   150,754   150,754   146,957   146,957 Marketable equity securities  **7,053**   **7,435**   6,481   7,039   108,025   108,253  **Total other**  **168,359**   **168,755**   164,829   165,369   266,771   266,918  **Total investment securities** **$****3,889,801**  **$****3,863,182**  $4,340,903  $4,362,924  $5,232,468  $5,124,682  Duration in years (1)      **3.8**       3.2       3.0  (1) The average duration assumes a market driven pre-payment rate on securities subjectto pre-payment.
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     At June 30, 2007, non-marketable equity securities includes $123.0 million of stock ofthe Federal Home Loan Bank of Cincinnati and $29.1 million of stock of the Federal Reserve Bank.     Gross losses on securities totaled $5.1 million for the three months ended June 30, 2007. Forthe six months ended June 30, 2007, gross gains on securities totaled $5.0 million and gross lossestotaled $10.0 million. Gross losses for the six months ended June 30, 2007 included $8.4 millionof impairment losses on certain securities backed by mortgage loans to borrowers with low FICOscores. Including impairment recognized since the fourth quarter of 2006, at June 30, 2007, thesesecurities had a carrying value of $9.3 million. Gross gains and losses from the sales ofsecurities were not material for the three or six month periods ended June 30, 2006.     As of June 30, 2007, Management has evaluated all other investment securities with unrealizedlosses and all non-marketable securities for impairment. The unrealized losses were caused byinterest rate increases and other market related conditions. The contractual terms and/or cashflows of the investments do not permit the issuer to settle the securities at a price less than theamortized cost. Huntington has the intent and ability to hold these investment securities until thefair value is recovered, which may be maturity, and therefore, does not consider them to beother-than-temporarily impaired at June 30, 2007.**Note 7 – Earnings per Share**     Basic earnings per share is the amount of earnings available to each share of common stockoutstanding during the reporting period. Diluted earnings per share is the amount of earningsavailable to each share of common stock outstanding during the reporting period adjusted to includethe effect of potentially dilutive common shares. Potentially dilutive common shares includeincremental shares issued upon exercise of outstanding stock options, the vesting of restrictedstock units, and the distribution of shares from deferred compensation plans. The calculation ofbasic and diluted earnings per share for the three and six month periods ended June 30, 2007 and2006, was as follows:                   Three Months Ended Six Months Ended  June 30, June 30,*(in thousands, except per share amounts)* **2007** 2006 **2007** 2006   **Net income** **$****80,521**  $111,604  **$****176,247**  $216,060 Average common shares outstanding  **236,032**   241,729   **235,809**   236,349 Dilutive potential common shares  **2,976**   2,809   **3,072**   3,102    **Diluted average common shares outstanding**  **239,008**   244,538   **238,881**   239,451                     **Earnings per share**                Basic **$****0.34**  $0.46  **$****0.75**  $0.91 Diluted  **0.34**   0.46   **0.74**   0.90      Options to purchase 9.4 million shares during the three month and six month periods endedJune 30, 2007 and 5.6 million shares during the three month and six month periods ended June 30,2006, respectively, were outstanding but were not included in the computation of diluted earningsper share because the effect would be antidilutive. The weighted average exercise price for theseoptions was $24.60 and $24.61 per share and $25.68 and $25.67 per share for the three and six monthperiods ended June 30, 2007 and 2006, respectively.**Note 8 – Share-based Compensation**     Huntington sponsors nonqualified and incentive share-based compensation plans. These plansprovide for the granting of stock options and other awards to officers, directors, and otheremployees. Stock options are granted at the market price on the date of the grant. Options vestratably over three years or when other conditions are met. Options granted prior to May 2004 have amaximum term of ten years. All options granted beginning in May 2004 have a maximum term of sevenyears.     Beginning in 2006, Huntington began granting restricted stock units under the 2004 Stock andLong-Term Incentive Plan. Restricted stock units are issued at no cost to the recipient, and canbe settled only in shares at the end ofthe vesting period, subject to certain service restrictions. The fair value of the restrictedstock unit awards was based on the closing market price of the Company’s common stock on the dateof award.
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     Huntington’s board of directors has approved all of the plans. Shareholders have approved eachof the plans, except for the broad-based Employee Stock Incentive Plan. Of the 28.8 million sharesof common stock authorized for issuance under the plans at June 30, 2007, 19.8 million wereoutstanding and 9.0 million were available for future grants.     Huntington uses the Black-Scholes option-pricing model to value share-based compensationexpense. This model assumes that the estimated fair value of options is amortized over the options’vesting periods. Compensation costs are included in personnel costs on the consolidated statementsof income. Forfeitures are estimated at the date of grant based on historical rates and reduce thecompensation expense recognized. The risk-free interest rate is based on the U.S. Treasury yieldcurve in effect at the date of grant. Expected volatility is based on the historical volatility ofHuntington’s stock. The expected term of options granted is derived from historical data onemployee exercises. The expected dividend yield is based on the dividend rate and stock price onthe date of the grant. The following table illustrates the weighted-average assumptions used inthe option-pricing model for options granted in each of the periods presented.           Six Months Ended  June 30,  **2007** 2006   **Assumptions**        Risk-free interest rate  **4.57**%  4.58%Expected dividend yield  **4.45**   4.20 Expected volatility of Huntington’s common stock  **21.1**   22.2 Expected option term (years)  **6.0**   6.0          **Weighted-average grant date fair value per share** **$****3.75**  $4.23      Huntington’s stock option activity and related information for the six month period ended June30, 2007, was as follows:                           Weighted-          Weighted-  Average          Average  Remaining  Aggregate       Exercise  Contractual  Intrinsic *(in thousands, except per share amounts)* Options  Price  Life *(Years)*  Value  Outstanding at January 1, 2007  20,573  $21.36         Granted  18   23.71         Exercised  (947)  18.33         Forfeited/expired  (342)  23.40          **Outstanding at June 30, 2007**  **19,302**  **$****21.47**   **4.4**  **$****42,049**  **Exercisable at June 30, 2007**  **13,648**  **$****20.86**   **4.1**  **$****38,331**       The aggregate intrinsic value represents the amount by which the fair value of underlyingstock exceeds the option exercise price. The total intrinsic value of stock options exercisedduring the six month periods ended June 30, 2007 and 2006, was $4.1 million and $5.9 million,respectively.     Total share-based compensation expense was $3.9 million and $4.3 million for the three monthperiods ended June 30, 2007 and 2006, respectively. For the six month periods ended June 30, 2007and 2006, share-based compensation expense was $7.8 million and $8.5 million, respectively.Huntington also recognized $1.4 million and $1.5 million in tax benefits for the three months endedJune 30, 2007 and 2006, respectively, related to share-based compensation. The tax benefitsrecognized related to share-based compensation for the six month periods ended June 30, 2007 and2006 were $2.7 million and $3.0 million, respectively.     Cash received from the exercise of options for the three month periods ended June 30, 2007 and2006 was $10.7 million and $5.8 million, respectively. For the six month periods ended June 30,2007 and 2006, cash received from option exercises were $14.6 million and $15.2 million,respectively. The tax benefit realized for the tax deductions from option exercises totaled $0.9million for both the three month periods ended June 30, 2007 and 2006. For both of the six monthperiods ended June 30, 2007 and 2006, the tax benefit realized for the tax deductions from optionexercises totaled $1.8 million.
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     Huntington issues shares to fulfill stock option exercises and restricted stock units fromavailable shares held in treasury. At June 30, 2007, the Company believes there are adequateshares in treasury to satisfy anticipated stock option exercises in 2007.     The following table summarizes the status of Huntington’s restricted stock units as of and forthe six months ended June 30, 2007:               Weighted-       Average   Restricted  Grant Date   Stock  Fair Value *(in thousands, except per share amounts)* Units  Per Share  Nonvested at January 1, 2007  **468**  **$****23.37** Granted  **5**   **23.62** Vested  **(6****)**  **23.34** Forfeited  **(13****)**  **23.34**  **Nonvested at June 30, 2007**  **454**  **$****23.38**       As of June 30, 2007, the total compensation cost related to restricted stock units not yetrecognized was $7.0 million with a weighted-average expense recognition period of 2.1 years. Thetotal fair value of restricted stock units vested during the six months ended June 30, 2007, was$0.1 million.     As a result of the acquisition of Sky Financial, the outstanding stock options to purchaseSky Financial’s common stock were converted into 7.4 million options to purchase shares ofHuntington common stock with a weighted average exercise price of $18.40.**Note 9 – Income Taxes**     The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction andvarious state, city, and foreign jurisdictions. Federal income tax audits have been resolvedthrough 2003. Various state and city jurisdictions remain open to examination for tax years 2000and forward.     The Company adopted the provisions of FIN 48 on January 1, 2007. The implementation of FIN 48did not impact the Company’s financial statements. As of June 30, 2007, there were no unrecognizedtax benefits.     The Company recognizes interest and penalties on income tax assessments or income tax refundsin the financial statements as a component of its provision for income taxes.**Note 10 – Benefit Plans**     Huntington sponsors the Huntington Bancshares Retirement Plan (the Plan), a non-contributorydefined benefit pension plan covering substantially all employees. The Plan provides benefits basedupon length of service and compensation levels. The funding policy of Huntington is to contributean annual amount that is at least equal to the minimum funding requirements but not more than thatdeductible under the Internal Revenue Code.     In addition, Huntington has an unfunded, defined benefit post-retirement plan (Post-RetirementBenefit Plan) that provides certain healthcare and life insurance benefits to retired employees whohave attained the age of 55 and have at least 10 years of vesting service under this plan. For anyemployee retiring on or after January 1, 1993, post-retirement healthcare benefits are based uponthe employee’s number of months of service and are limited to the actual cost of coverage. Lifeinsurance benefits are a percentage of the employee’s base salary at the time of retirement, with amaximum of $50,000 of coverage.
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     The following table shows the components of net periodic benefit expense of the Plan and thePost-Retirement Benefit Plan:                   Pension Benefits Post Retirement Benefits  Three Months Ended Three Months Ended  June 30, June 30,*(in thousands)* **2007** 2006 **2007** 2006   Service cost **$****4,445**  $4,414  **$****375**  $383 Interest cost  **5,966**   5,539   **667**   565 Expected return on plan assets  **(9,120****)**  (8,319)  —   — Amortization of transition asset  **2**   **—**   **276**   276 Amortization of prior service cost  —   **—**   **47**   95 Settlements  **1,000**   1,000   —   — Recognized net actuarial loss (gain)  **3,116**   4,377   **(122****)**  (181)   **Benefit expense** **$****5,409**  $7,011  **$****1,243**  $1,138                       Pension Benefits Post Retirement Benefits  Six Months Ended Six Months Ended  June 30, June 30,*(in thousands)* **2007** 2006 **2007** 2006   Service cost **$****8,890**  $8,723  **$****749**  $720 Interest cost  **11,933**   11,078   **1,334**   1,130 Expected return on plan assets  **(18,240****)**  (16,539)  —   — Amortization of transition asset  **3**   **—**   **552**   552 Amortization of prior service cost  **1**   1   **189**   190 Settlements  **2,000**   2,000   —   — Recognized net actuarial loss (gain)  **6,231**   8,754   **(203****)**  (362)   **Benefit expense** **$****10,818**  $14,017  **$****2,621**  $2,230         There is no required minimum contribution for 2007 to the Plan.     Huntington also sponsors other retirement plans, the most significant being the SupplementalExecutive Retirement Plan and the Supplemental Retirement Income Plan. These plans are nonqualifiedplans that provide certain former officers and directors of Huntington and its subsidiaries withdefined pension benefits in excess of limits imposed by federal tax law. The cost of providingthese plans was $0.6 million for each of the three month periods ended June 30, 2007 and 2006,respectively. For the respective six-month periods, the cost was $1.4 million and $1.3 million.     Huntington has a defined contribution plan that is available to eligible employees. Huntingtonmatches participant contributions dollar for dollar, up to the first 3% of base pay contributed tothe plan. The match is 50 cents for each dollar on the 4th and 5th percent of base pay contributedto the plan. The cost of providing this plan was $2.7 million and $2.6 million for the three monthperiods ended June 30, 2007 and 2006, respectively. For the respective six month periods, the costwas $5.4 million and $5.1 million.     As a result of the acquisition of Sky Financial, Huntington will remeasure its pension andpost retirement plan assets and liabilities as of July 1, 2007.
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**Note 11 – Commitments and Contingent Liabilities*****Commitments to extend credit****:*     In the ordinary course of business, Huntington makes various commitments to extend credit thatare not reflected in the financial statements. The contract amounts of these financial agreementsat June 30, 2007, December 31, 2006, and June 30, 2006, were as follows:               **June 30,** December 31, June 30,*(in millions)* **2007** 2006 2006 **Contract amount represents credit risk**            Commitments to extend credit            Commercial **$****4,602**  $4,416  $4,021 Consumer  **3,491**   3,374   3,595 Commercial real estate  **1,559**   1,645   1,764 Standby letters of credit  **1,230**   1,156   1,121 Commercial letters of credit  **48**   54   54      Commitments to extend credit generally have fixed expiration dates, are variable-rate, andcontain clauses that permit Huntington to terminate or otherwise renegotiate the contracts in theevent of a significant deterioration in the customer’s credit quality. These arrangements normallyrequire the payment of a fee by the customer, the pricing of which is based on prevailing marketconditions, credit quality, probability of funding, and other relevant factors. Since many of thesecommitments are expected to expire without being drawn upon, the contract amounts are notnecessarily indicative of future cash requirements. The interest rate risk arising from thesefinancial instruments is insignificant as a result of their predominantly short-term, variable-ratenature.     Standby letters of credit are conditional commitments issued to guarantee the performance of acustomer to a third party. These guarantees are primarily issued to support public and privateborrowing arrangements, including commercial paper, bond financing, and similar transactions. Mostof these arrangements mature within two years. The carrying amount of deferred revenue associatedwith these guarantees was $3.8 million, $4.3 million, and $3.6 million at June 30, 2007, December31, 2006, and June 30, 2006, respectively.     Commercial letters of credit represent short-term, self-liquidating instruments thatfacilitate customer trade transactions and generally have maturities of no longer than 90 days. Themerchandise or cargo being traded normally secures these instruments.***Commitments to sell loans:***     Huntington enters into forward contracts relating to its mortgage banking business. At June30, 2007, December 31, 2006, and June 30, 2006, Huntington had commitments to sell residential realestate loans of $484.5 million, $319.9 million, and $341.5 million, respectively. These contractsmature in less than one year.***Litigation:***     In the ordinary course of business, there are various legal proceedings pending againstHuntington and its subsidiaries. In the opinion of Management, the aggregate liabilities, if any,arising from such proceedings are not expected to have a material adverse effect on Huntington’sconsolidated financial position.
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**Note 12 – Derivative Financial Instruments****Derivatives used in Asset and Liability Management Activities**     The following table presents the gross notional values of derivatives used in Huntington’sAsset and Liability Management activities at June 30, 2007, identified by the underlying interestrate-sensitive instruments:               **Fair Value** **Cash Flow**  *(in thousands )* **Hedges** **Hedges** **Total** Instruments associated with:            Deposits $615,000  $315,000   930,000 Federal Home Loan Bank advances  —   525,000   525,000 Subordinated notes  750,000   —   750,000 Other long-term debt  50,000   —   50,000  **Total notional value at June 30, 2007** $1,415,000  $840,000  $2,255,000       The following table presents additional information about the interest rate swaps used inHuntington’s Asset and Liability Management activities at June 30, 2007:                           **Average**     **Weighted-Average**  **Notional** **Maturity** **Fair** **Rate***(in thousands )* **Value** **(years)** **Value** **Receive** **Pay** Liability conversion swapsReceive fixed — generic $810,000   9.1  $(34,481)  5.29%  5.57%Receive fixed — callable  605,000   6.1   (18,942)  4.67   5.26 Pay fixed — generic  840,000   2.0   6,485   5.34   4.98  **Total liability conversion swaps** $2,255,000   5.7  $(46,938)  5.14%  5.27%      Interest rate caps used in Huntington’s Asset and Liability Management activities at June 30,2007, are shown in the table below:                       **Average**      **Notional** **Maturity** **Fair** **Weighted-Average***(in thousands )* **Value** **(years)** **Value** **Strike Rate** **Interest rate caps — purchased** $500,000   1.6  $1,900   5.50%      These derivative financial instruments were entered into for the purpose of altering theinterest rate risk of assets and liabilities. Consequently, net amounts receivable or payable oncontracts hedging either interest earning assets or interest bearing liabilities were accrued as anadjustment to either interest income or interest expense. The net amount resulted in a decrease tonet interest income of $0.5 million and $0.8 million for the three month periods ended June 30,2007 and 2006, respectively. For the six month periods ended June 30, 2007 and 2006, the impact tonet interest income was a decrease of $0.2 million and $0.2 million, respectively.     Collateral agreements are regularly entered into as part of the underlying derivativeagreements with Huntington’s counterparties to mitigate the credit risk associated withderivatives. At June 30, 2007, December 31, 2006and June 30, 2006, aggregate credit risk associated with these derivatives, net of collateralthat has been pledged by the counterparty, was $17.2 million, $42.6 million and $31.1 million,respectively. The credit risk associated with interest rate swaps is calculated after consideringmaster netting agreements.     During 2006, Huntington terminated certain interest rate swaps used to hedge the future expectedcash flows of certain FHLB advances and deferred these gains in accumulated other comprehensiveincome. The deferred swap gains were being amortized into interest expense over the remainingterms of the outstanding advances. During the second quarter of 2007, Huntington prepaid the FHLBadvances, and recognized a gain of $4.1 million, which represented the remaining unamortizedportion of the terminated swap gains.
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**Derivatives Used in Mortgage Banking Activities**     The following is a summary of the derivative assets and liabilities that Huntington used inits mortgage banking activities:               **June 30,** **December 31,** June 30,*(in thousands)* **2007** **2006** 2006 Derivative assets:            Interest rate lock agreements **$****354**  $236  $232 Forward trades and options  **6,441**   1,176   3,029  **Total derivative assets**  **6,795**   1,412   3,261  Derivative liabilities:            Interest rate lock agreements  **(818****)**  (838)  (1,222)Forward trades and options  **(417****)**  (699)  (35) **Total derivative liabilities**  **(1,235****)**  (1,537)  (1,257) **Net derivative (liability) asset** **$****5,560**  $(125) $2,004  **Derivatives Used in Trading Activities**     Various derivative financial instruments are offered to enable customers to meet theirfinancing and investing objectives and for their risk management purposes. Derivative financialinstruments used in trading activities consisted predominantly of interest rate swaps, but alsoincluded interest rate caps, floors, and futures, as well as foreign exchange options. Interestrate options grant the option holder the right to buy or sell an underlying financial instrumentfor a predetermined price before the contract expires. Interest rate futures are commitments toeither purchase or sell a financial instrument at a future date for a specified price or yield andmay be settled in cash or through delivery of the underlying financial instrument. Interest ratecaps and floors are option-based contracts that entitle the buyer to receive cash payments based onthe difference between a designated reference rate and a strike price, applied to a notionalamount. Written options, primarily caps, expose Huntington to market risk but not credit risk.Purchased options contain both credit and market risk. The interest rate risk of these customerderivatives is mitigated by entering into similar derivatives having offsetting terms with othercounterparties.     Supplying these derivatives to customers results in non-interest income. These instrumentsare carried at fair value in other assets with gains and losses reflected in other non-interestincome. Total trading revenue for customer accommodation was $3.4 million and $2.2 million for thethree month periods ended June 30, 2007 and 2006, respectively.For the six month periods ended June 30, 2007and 2006, total trading revenue for customer accommodation was $6.8 million and $5.2 million,respectively. The total notional value of derivative financial instruments used by Huntington onbehalf of customers, including offsetting derivatives was $5.2 billion, $4.6 billion, and $4.6billion at June 30, 2007, December 31, 2006, and June 30, 2006, respectively. Huntington’s creditrisk from interest rate swaps used for trading purposes was $53.3 million, $40.0 million, and $64.4million at the same dates.     Huntington also uses certain derivative financial instruments to offset changes in value ofits residential mortgage servicing assets. These derivatives consist primarily of forward interestrate agreements, and forward mortgage securities. The derivative instruments used are notdesignated as hedges under Statement No. 133. Accordingly, such derivatives are recorded at fairvalue with changes in fair value reflected in mortgage banking income*.*The total notional value ofthese derivative financial instruments at June 30, 2007, was $475.0 million. The total notionalamount corresponds to trading assets with a fair value of $0.3 million. Total losses for the threemonth periods ended June 30, 2007 and 2006 were $12.3 million and $5.8 million, respectively. Totallosses for the six month periods ended June 30, 2007 and 2006 were $12.8 million and $9.3 million,respectively.     In connection with securitization activities, Huntington purchased interest rate caps with anotional value totaling $1.5 billion. These purchased caps were assigned to the securitizationtrust for the benefit of the security holders. Interest rate caps were also sold totaling $1.5billion outside the securitization structure. Both the purchased and sold caps are marked to marketthrough income.
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**Note 13 – Shareholders’ Equity*****Change in par value and shares authorized:***     Duringthe second quarter, Huntington amended its charter to, among otherthings,assign a par value of $0.01 to each share of commonstock. Shares of common stock previously had no assigned par value. Huntington also amended itscharter to increase the number of authorized shares of common stock from 500 million shares to 1.0billion shares.***Share Repurchase Program:***     On April 20, 2006, the Company announced that its board of directors authorized a new programfor the repurchase of up to 15 million shares of common stock (the 2006 Repurchase Program). The 2006 RepurchaseProgram does not have an expiration date. The 2006 Repurchase Program cancelled and replaced theprior share repurchase program, authorized by the board of directors in 2005. The Company announcedits expectation to repurchase the shares from time to time in the open market or through privatelynegotiated transactions depending on market conditions.     Huntington did not repurchase any shares under the 2006 Repurchase Program for the three monthperiod ended June 30, 2007. At the end of the period, 3,850,000 shares may be purchased under the2006 Repurchase Program.**Note 14 – Segment Reporting**     Huntington has three distinct lines of business: Regional Banking, Dealer Sales, and thePrivate Financial and Capital Markets Group (PFCMG). A fourth segment includes the Treasuryfunction and other unallocated assets, liabilities, revenue, and expense. Lines of businessresults are determined based upon the Company’s management reporting system, which assigns balancesheet and income statement items to each of the business segments. The process is designed aroundthe Company’s organizational and management structure and, accordingly, the results derived are notnecessarily comparable with similar information published by other financial institutions. Anoverview of this system is provided below, along with a description of each segment and discussionof financial results.     The following provides a brief description of the four operating segments of Huntington:**Regional Banking:**This segment provides traditional banking products and services to consumer,small business, and, commercial customers. As of June 30 2007, and excluding the impact of the SkyFinancial acquisition, it operated in eight regions within the five states of Ohio, Michigan, WestVirginia, Indiana, and Kentucky. It provided these services through a banking network of 375branches, over 1,000 ATMs, along with Internet and telephone banking channels. It also providedcertain services outside of these five states, including mortgage banking and equipment leasing.Each region is further divided into retail and commercial banking units. Retail products andservices include home equity loans and lines of credit, first mortgage loans, direct installmentloans, small business loans, personal and business deposit products, as well as sales of investmentand insurance services. Retail Banking accounts for 56% and 77% of total Regional Banking loans anddeposits, respectively. Commercial Banking serves middle market commercial banking relationships,which use a variety of banking products and services including, but not limited to, commercialloans, international trade, cash management, leasing, interest rate protection products, capitalmarket alternatives, 401(k) plans, and mezzanine investment capabilities.**Dealer Sales:**This segment provides a variety of banking products and services to more than 3,500automotive dealerships within the Company’s primary banking markets, as well as in Arizona,Florida, Georgia, Nevada, New Jersey, North Carolina, New York, Pennsylvania, South Carolina, andTennessee. Dealer Sales finances the purchase of automobiles by customers at the automotivedealerships, purchases automobiles from dealers and simultaneously leases the automobiles toconsumers under long-term leases, finances the dealerships’ new and used vehicle inventories, land,buildings, and other real estate owned by the dealerships, or dealer working capital needs, andprovides other banking services to the automotive dealerships and their owners. Competition fromthe financing divisions of automobile manufacturers and from other financial institutions isintense. Dealer Sales’ production opportunities are directly impacted by the general automotivesales business, including programs initiated by manufacturers to enhance and increase salesdirectly. Huntington has been in this line of business for over 50 years.
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**Private Financial and Capital Markets Group (PFCMG):**This segment provides products and servicesdesigned to meet the needs of higher net worth customers. Revenue is derived through the sale oftrust, asset management, investment advisory, brokerage, insurance, and private banking productsand services. It also focuses on financial solutions for corporate and institutional customersthat include investment banking, sales and trading of securities, mezzanine capital financing, andrisk management products. To serve high net worth customers, a unique distribution model is usedthat employs a single, unified sales force to deliver products and services mainly through RegionalBanking distribution channels.**Treasury / Other:**This segment includes revenue and expense related to assets, liabilities, andequity that are not directly assigned or allocated to one of the other three business segments.Assets in this segment include investment securities and bank owned life insurance. The netinterest income/(expense) of this segment includes the net impact of administering our investmentsecurities portfolios as part of overall liquidity management. A match-funded transfer pricingsystem is used to attribute appropriate funding interest income and interest expense to otherbusiness segments. As such, net interest income includes the net impact of any over or underallocations arising from centralized management of interest rate risk. Furthermore, net interestincome includes the net impact of derivatives used to hedge interest rate sensitivity.Non-interest income includes miscellaneous fee income not allocated to other business segments,including bank owned life insurance income. Fee income also includes asset revaluations notallocated to other business segments, as well as any investment securities and trading assets gainsor losses. The non-interest expense includes certain corporate administrative and othermiscellaneous expenses not allocated to other business segments. This segment also includes anydifference between the actual effective tax rate of Huntington and the statutory tax rate used toallocate income taxes to the other segments.
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     Listed below are certain financial results by line of business. For the three and sixmonth periods ended June 30, 2007 and 2006, operating earnings were the same as reported earnings.                       Three Months Ended June 30,**Income Statements** Regional Dealer     Treasury/ Huntington*(in thousands )* Banking Sales PFCMG Other Consolidated **2007**                    Net interest income **$****213,589**  **$****32,333**  **$****18,199**  **$****(10,730****)** **$****253,391** Provision for credit losses  **(54,873****)**  **(303****)**  **(4,957****)**  **—**   **(60,133****)**Non-interest income  **96,657**   **10,984**   **45,964**   **2,588**   **156,193** Non-interest expense  **(166,469****)**  **(18,618****)**  **(41,063****)**  **(18,505****)**  **(244,655****)**Income taxes  **(31,116****)**  **(8,539****)**  **(6,350****)**  **21,730**   **(24,275****)** **Operating / reported net income** **$****57,788**  **$****15,857**  **$****11,793**  **$****(4,917****)** **$****80,521**  **2006**                    Net interest income $227,473  $34,784  $18,037  $(18,099) $262,195 Provision for credit losses  (14,844)  949   (1,850)  —   (15,745)Non-interest income  92,759   21,516   39,139   9,605   163,019 Non-interest expense  (177,245)  (28,103)  (38,116)  (8,895)  (252,359)Income taxes  (44,850)  (10,201)  (6,024)  15,569   (45,506) Operating / reported net income $83,293  $18,945  $11,186  $(1,820) $111,604                         Six Months Ended June 30,**Income Statements** Regional Dealer     Treasury/ Huntington*(in thousands of dollars)* Banking Sales PFCMG Other Consolidated **2007**                    Net interest income **$****428,589**  **$****63,974**  **$****37,376**  **$****(20,993****)** **$****508,946** Provision for credit losses  **(77,329****)**  **(8,048****)**  **(4,162****)**  **—**   **(89,539****)**Non-Interest income  **186,200**   **24,165**   **79,615**   **11,390**   **301,370** Non-Interest expense  **(329,370****)**  **(38,205****)**  **(81,295****)**  **(37,857****)**  **(486,727****)**Income taxes  **(72,831****)**  **(14,661****)**  **(11,037****)**  **40,726**   **(57,803****)** **Operating / reported net income** **$****135,259**  **$****27,225**  **$****20,497**  **$****(6,734****)** **$****176,247**  **2006**                    Net interest income $435,553  $69,615  $35,606  $(34,899) $505,875 Provision for credit losses  (25,234)  (6,813)  (3,238)  —   (35,285)Non-Interest income  170,551   48,508   80,033   23,461   322,553 Non-Interest expense  (319,393)  (59,883)  (68,827)  (42,671)  (490,774)Income taxes  (91,517)  (17,999)  (15,251)  38,458   (86,309) Operating / reported net income $169,960  $33,428  $28,323  $(15,651) $216,060                             Assets at Deposits at  **June 30,** December 31, June 30, **June 30,** December 31, June 30,*(in millions)* **2007** 2006 2006 **2007** 2006 2006     Regional Banking **$****21,681**  $20,933  $21,035  **$****20,482**  $20,231  $19,839 Dealer Sales  **5,146**   5,003   5,417   **58**   59   61 PFCMG  **2,296**   2,153   2,179   **1,104**   1,162   1,218 Treasury / Other  **7,298**   7,240   7,635   **2,956**   3,596   3,475      **Total** **$****36,421**  $35,329  $36,266  **$****24,600**  $25,048  $24,593      
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