Exhibit
99.1
 Item 1. Financial Statements
 Huntington Bancshares Incorporated
 
 Condensed Consolidated Balance Sheets
 (Unaudited)
 2008
    
    2007(in thousands, except number of shares)
    
    March 31,
    
    December 31,
    
    March 31,AssetsCash and due from banks
    
    $
    1,242,422
    
    
    $
    1,416,597
    
    
    $
    867,256Federal funds sold and securities
purchased under resale agreements
    
    
    1,038,820
    
    
    
    592,649
    
    
    
    701,951Interest bearing deposits in banks
    
    
    253,221
    
    
    
    340,090
    
    
    
    100,417Trading account securities
    
    
    1,246,877
    
    
    
    1,032,745
    
    
    
    76,631Loans held for sale (loans at fair value, $565,913 at March 31, 2008)
    
    
    632,266
    
    
    
    494,379
    
    
    
    277,538Investment securities
    
    
    4,313,006
    
    
    
    4,500,171
    
    
    
    3,724,676Loans and leases
    
    
    41,014,219
    
    
    
    40,054,338
    
    
    
    26,266,746Allowance for loan and lease losses
    
    
    (627,615
    )
    
    
    (578,442
    )
    
    
    (282,976
    )Net loans and leases
    
    
    40,386,604
    
    
    
    39,475,896
    
    
    
    25,983,770Bank owned life insurance
    
    
    1,327,031
    
    
    
    1,313,281
    
    
    
    1,097,986Premises and equipment
    
    
    544,718
    
    
    
    557,565
    
    
    
    377,687Goodwill
    
    
    3,047,407
    
    
    
    3,059,333
    
    
    
    569,779Other intangible assets
    
    
    409,055
    
    
    
    427,970
    
    
    
    57,165Accrued income and other assets
    
    
    1,610,542
    
    
    
    1,486,792
    
    
    
    1,144,443Total Assets
    
    $
    56,051,969
    
    
    $
    54,697,468
    
    
    $
    34,979,299Liabilities and Shareholders Equity
LiabilitiesDeposits
    
    $
    38,116,341
    
    
    $
    37,742,921
    
    
    $
    24,585,893Short-term borrowings
    
    
    3,336,738
    
    
    
    2,843,638
    
    
    
    1,577,732Federal Home Loan Bank advances
    
    
    3,684,193
    
    
    
    3,083,555
    
    
    
    1,197,411Other long-term debt
    
    
    1,907,881
    
    
    
    1,937,078
    
    
    
    2,173,818Subordinated notes
    
    
    1,930,183
    
    
    
    1,934,276
    
    
    
    1,280,870Accrued expenses and other liabilities
    
    
    1,170,054
    
    
    
    1,206,860
    
    
    
    1,112,215Total Liabilities
    
    
    50,145,390
    
    
    
    48,748,328
    
    
    
    31,927,939Shareholders equityPreferred stock  authorized 6,617,808 shares;
none outstanding
    
    
    
    
    
    
    
    
    
    
    Common stock 
No par value and authorized 500,000,000 shares;
issued 236,301,562 shares; outstanding 235,713,500 shares.
    
    
    
    
    
    
    
    
    
    
    2,072,976Par value of $0.01 and authorized 1,000,000,000 shares; issued 367,007,244 shares and 367,000,815
shares, respectively; outstanding 366,226,146 and
366,261,676, respectively
    
    
    3,670
    
    
    
    3,670
    
    
    
    Capital surplus
    
    
    5,241,033
    
    
    
    5,237,783
    
    
    
    Less 781,098, 739,139 and 588,062
treasury shares at cost, respectively
    
    
    (14,834
    )
    
    
    (14,391
    )
    
    
    (11,128
    )Accumulated other comprehensive loss:Unrealized (losses) gains on investment securities
    
    
    (79,396
    )
    
    
    (10,011
    )
    
    
    11,562Unrealized gains on cash flow hedging derivatives
    
    
    4,307
    
    
    
    4,553
    
    
    
    12,901Pension and other postretirement benefit adjustments
    
    
    (47,128
    )
    
    
    (44,153
    )
    
    
    (83,972
    )Retained earnings
    
    
    798,927
    
    
    
    771,689
    
    
    
    1,049,021Total Shareholders Equity
    
    
    5,906,579
    
    
    
    5,949,140
    
    
    
    3,051,360Total Liabilities and Shareholders Equity
    
    $
    56,051,969
    
    
    $
    54,697,468
    
    
    $
    34,979,299
 See notes to unaudited condensed consolidated financial statements
 52




---



##### 



Huntington Bancshares Incorporated
 
 Condensed Consolidated Statements of Income  (Unaudited)
 Three Months EndedMarch 31,(in thousands, except per share amounts)
    
    2008
    
    2007Interest and fee incomeLoans and leasesTaxable
    
    $
    658,470
    
    
    $
    461,141Tax-exempt
    
    
    1,736
    
    
    
    471Investment securitiesTaxable
    
    
    53,895
    
    
    
    55,115Tax-exempt
    
    
    7,354
    
    
    
    6,093Other
    
    
    31,956
    
    
    
    12,129Total interest income
    
    
    753,411
    
    
    
    534,949Interest expenseDeposits
    
    
    274,883
    
    
    
    196,723Short-term borrowings
    
    
    19,156
    
    
    
    19,837Federal Home Loan Bank advances
    
    
    33,720
    
    
    
    12,510Subordinated notes and other long-term debt
    
    
    48,828
    
    
    
    50,324Total interest expense
    
    
    376,587
    
    
    
    279,394Net interest income
    
    
    376,824
    
    
    
    255,555Provision for credit losses
    
    
    88,650
    
    
    
    29,406Net interest income after provision for credit losses
    
    
    288,174
    
    
    
    226,149Service charges on deposit accounts
    
    
    72,668
    
    
    
    44,793Trust services
    
    
    34,128
    
    
    
    25,894Brokerage and insurance income
    
    
    36,560
    
    
    
    16,082Other service charges and fees
    
    
    20,741
    
    
    
    13,208Bank owned life insurance income
    
    
    13,750
    
    
    
    10,851Mortgage banking (loss) income
    
    
    (7,063
    )
    
    
    9,351Securities gains
    
    
    1,429
    
    
    
    104Other income
    
    
    63,539
    
    
    
    24,894Total non-interest income
    
    
    235,752
    
    
    
    145,177Personnel costs
    
    
    201,943
    
    
    
    134,639Outside data processing and other services
    
    
    34,361
    
    
    
    21,814Net occupancy
    
    
    33,243
    
    
    
    19,908Equipment
    
    
    23,794
    
    
    
    18,219Amortization of intangibles
    
    
    18,917
    
    
    
    2,520Marketing
    
    
    8,919
    
    
    
    7,696Professional services
    
    
    9,090
    
    
    
    6,482Telecommunications
    
    
    6,245
    
    
    
    4,126Printing and supplies
    
    
    5,622
    
    
    
    3,242Other expense
    
    
    28,347
    
    
    
    23,426Total non-interest expense
    
    
    370,481
    
    
    
    242,072Income before income taxes
    
    
    153,445
    
    
    
    129,254Provision for income taxes
    
    
    26,377
    
    
    
    33,528Net income
    
    $
    127,068
    
    
    $
    95,726Average common shares  basic
    
    
    366,235
    
    
    
    235,586Average common shares  diluted
    
    
    367,208
    
    
    
    238,754Per common shareNet income  basic
    
    $
    0.35
    
    
    $
    0.41Net income  diluted
    
    
    0.35
    
    
    
    0.40Cash dividends declared
    
    
    0.265
    
    
    
    0.265
 See notes to unaudited condensed consolidated financial statements
 53




---



##### 



Huntington Bancshares Incorporated

Condensed Consolidated Statements of Changes in Shareholders Equity  (Unaudited)
 AccumulatedOtherPreferred Stock
    
    Common Stock
    
    Capital
    
    Treasury Stock
    
    Comprehensive
    
    Retained(in thousands)
    
    Shares
    
    Amount
    
    Shares
    
    Amount
    
    Surplus
    
    Shares
    
    Amount
    
    Loss
    
    Earnings
    TotalThree Months Ended March 31, 2007:Balance, beginning of period
    
    
    
    
    
    $
    
    
    
    
    236,064
    
    
    $
    2,064,764
    
    
    $
    
    
    
    
    (589
    )
    
    $
    (11,141
    )
    
    $
    (55,066
    )
    
    $
    1,015,769
    
    
    $
    3,014,326Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    95,726
    
    
    
    95,726Unrealized net losses on investment securities
arising during the period, net of reclassification (1)
for net realized gains, net of tax of ($1,463)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,692
    )
    
    
    
    
    
    
    (2,692
    )Unrealized losses on cash flow hedging derivatives,
net of tax of ($2,211)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,107
    )
    
    
    
    
    
    
    (4,107
    )Amortization included in net periodic benefit costs:Net actuarial loss, net of tax of ($1,101)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,045
    
    
    
    
    
    
    
    2,045Prior service costs, net of tax of ($70)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    131
    
    
    
    
    
    
    
    131Transition obligation, net of tax of ($97)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    180
    
    
    
    
    
    
    
    180Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    91,283Cash dividends declared ($0.265 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (62,474
    )
    
    
    (62,474
    )Recognition
of the fair value of share-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,940
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,940Other share-based compensation activity
    
    
    
    
    
    
    
    
    
    
    238
    
    
    
    4,347
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,347Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (75
    )
    
    
    
    
    
    
    1
    
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    (62
    )Balance, end of period
    
    
    
    
    
    
    
    
    
    
    236,302
    
    
    
    2,072,976
    
    
    
    
    
    
    
    (588
    )
    
    
    (11,128
    )
    
    
    (59,509
    )
    
    
    1,049,021
    
    
    
    3,051,360Three Months Ended March 31, 2008:Balance, beginning of period
    
    
    
    
    
    
    
    
    
    
    367,001
    
    
    
    3,670
    
    
    
    5,237,783
    
    
    
    (739
    )
    
    
    (14,391
    )
    
    
    (49,611
    )
    
    
    771,689
    
    
    
    5,949,140Cumulative effect of change in accounting principle
for fair value of assets and libilities, net of tax of ($803)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,491
    
    
    
    1,491Cumulative effect of changing measurement date
provisions for pension and post-retirement assets
and obligations, net of tax of $4,324
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,834
    )
    
    
    (4,195
    )
    
    
    (8,029
    )Balance, beginning of period  as adjusted
    
    
    
    
    
    
    
    
    
    
    367,001
    
    
    
    3,670
    
    
    
    5,237,783
    
    
    
    (739
    )
    
    
    (14,391
    )
    
    
    (53,445
    )
    
    
    768,985
    
    
    
    5,942,602Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    127,068
    
    
    
    127,068Unrealized net losses on investment securities
arising during the period, net of reclassification(1)for net realized gains, net of tax of $37,930
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (69,385
    )
    
    
    
    
    
    
    (69,385
    )Unrealized losses on cash flow hedging derivatives,
net of tax of $132
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (246
    )
    
    
    
    
    
    
    (246
    )Amortization included in net periodic benefit costs:Net actuarial loss, net of tax of ($281)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    522
    
    
    
    
    
    
    
    522Prior service costs, net of tax of ($84)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    157
    
    
    
    
    
    
    
    157Transition obligation, net of tax of ($97)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    180
    
    
    
    
    
    
    
    180Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    58,296Cash dividends declared ($0.265 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (97,062
    )
    
    
    (97,062
    )Recognition of the fair value of share-based
compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,654
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,654Other share-based compensation activity
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    (219
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (64
    )



    
    
    (283
    )Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (185
    )
    
    
    (42
    )
    
    
    (443
    )
    
    
    
    
    
    
    
    
    
    
    (628
    )Balance, end of period
    
    
    
    
    
    $
    
    
    
    
    367,007
    
    
    $
    3,670
    
    
    $
    5,241,033
    
    
    
    (781
    )
    
    $
    (14,834
    )
    
    $
    (122,217
    )
    
    $
    798,927
    
    
    $
    5,906,579
 
 (1)
    
    Reclassification adjustments represent net unrealized gains or losses as of December 31 of the prior year on investment securities that were sold during the current year.
For the three months ended March 31, 2008 and 2007, the reclassification adjustments were $929, net of tax of ($500), and $68, net of tax of ($36), respectively. See notes to unaudited condensed consolidated financial statements.
 54




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##### 



Huntington Bancshares Incorporated
Condensed Consolidated Statements of Cash Flows  (Unaudited)
 Three Months EndedMarch 31,(in thousands)
    
    2008
    
    
    2007Operating activitiesNet income
    
    $
    127,068
    
    
    $
    95,726Adjustments
to reconcile net income to net cash provided by operating activities:Provision for credit losses
    
    
    88,650
    
    
    
    29,406Depreciation and amortization
    
    
    59,125
    
    
    
    21,226Net increase in current and deferred income taxes
    
    
    135,936
    
    
    
    87,676Net increase in trading account securities
    
    
    (214,132
    )
    
    
    (40,575
    )Originations of loans held for sale
    
    
    (1,026,797
    )
    
    
    (600,113
    )Principal payments on and proceeds from loans held for sale
    
    
    865,360
    
    
    
    584,561Other, net
    
    
    (40,670
    )
    
    
    3,024Net cash (used for) provided by operating activities
    
    
    (5,460
    )
    
    
    180,931Investing activitiesIncrease in interest bearing deposits in banks
    
    
    (51,512
    )
    
    
    (26,248
    )Proceeds from:Maturities and calls of investment securities
    
    
    108,541
    
    
    
    118,718Sales of investment securities
    
    
    133,269
    
    
    
    426,156Purchases of investment securities
    
    
    (162,087
    )
    
    
    (21,620
    )Proceeds from sales of loans
    
    
    
    
    
    
    108,698Net loan and lease originations, excluding sales
    
    
    (1,006,819
    )
    
    
    (240,481
    )Purchases of operating lease assets
    
    
    (72,396
    )
    
    
    (2,491
    )Proceeds from sale of operating lease assets
    
    
    10,639
    
    
    
    12,323Purchases of premises and equipment
    
    
    (13,629
    )
    
    
    (18,563
    )Other, net
    
    
    18,708
    
    
    
    5,348Net cash (used for) provided by investing activities
    
    
    (1,035,286
    )
    
    
    361,840Financing activitiesIncrease (decrease) in deposits
    
    
    367,188
    
    
    
    (464,425
    )Increase (decrease) in short-term borrowings
    
    
    536,335
    
    
    
    (98,457
    )Maturity/redemption of subordinated notes
    
    
    (50,000
    )
    
    
    Proceeds from Federal Home Loan Bank advances
    
    
    602,771
    
    
    
    200,600Maturity/redemption of Federal Home Loan Bank advances
    
    
    (2,261
    )
    
    
    (10
    )Maturity of long-term debt
    
    
    (44,211
    )
    
    
    (70,023
    )Dividends paid on common stock
    
    
    (96,797
    )
    
    
    (61,540
    )Other, net
    
    
    (283
    )
    
    
    (456
    )Net cash provided by (used for) financing activities
    
    
    1,312,742
    
    
    
    (494,311
    )Increase in cash and cash equivalents
    
    
    271,996
    
    
    
    48,460Cash and cash equivalents at beginning of period
    
    
    2,009,246
    
    
    
    1,520,747Cash and cash equivalents at end of period
    
    $
    2,281,242
    
    
    $
    1,569,207Supplemental disclosures:Income taxes paid (refunded)
    
    $
    (109,559
    )
    
    
    $238Interest paid
    
    
    375,258
    
    
    
    294,617Non-cash activitiesCommon stock dividends accrued, paid in subsequent quarter
    
    
    77,027
    
    
    
    48,205
 See notes to unaudited condensed consolidated financial statements.
 55




---



##### 



Notes to Unaudited Condensed Consolidated Financial Statements
 Note 1
 Basis of Presentation
    Note 2  New Accounting Pronouncements
 FASB Statement No. 157, Fair Value Measurements (Statement No. 157) 
 Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements
That Address Fair Value Measurements for Purposes of Lease Classification or Measurement Under
Statement 13 Effective Date of FASB Statement No. 157
 FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilitie s
(Statement No. 159)
 56




---



##### 



FSP FIN 39-1, Amendment of FASB Interpretation No. 39 (FSP 39-1)
  Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 109, Written Loan
Commitments Recorded at Fair Value Through Earnings (SAB 109) Accounting for
Servicing of Financial Assets Application of Accounting Principles to Loan Commitments
 FASB Statement No. 141 (Revised 2007), Business Combinations (Statement No. 141R)
 FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statement s  a n
amendment of ARB No. 51 (Statement No. 160)
 FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities  an
amendment of FASB Statement No. 133 (Statement No. 161)
 Note 3  Restructured Loans
  57




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##### 



Franklin Credit Management relationship
    Commercial Loans to Franklin
 BankGroup
    
    
    Participated
    
    
    HuntingtonFranklin
    
    
    Tribeca
    
    
    Exposure
    
    
    to others
    
    
    Exposure(in thousands of dollars)Variable rate, term loan (Facility A)
    
    $
    573,396
    
    
    $
    408,726
    
    
    $
    982,122
    
    
    $
    (195,595
    )
    
    $
    786,527Variable rate, subordinated term loan (Facility B)
    
    
    321,014
    
    
    
    98,774
    
    
    
    419,788
    
    
    
    (71,647
    )
    
    
    348,141Fixed rate,
junior subordinated term loan (Facility C)
    
    
    125,000
    
    
    
    
    
    
    
    125,000
    
    
    
    (8,224
    )
    
    
    116,776Line of credit facility
    
    
    733
    
    
    
    
    
    
    
    733
    
    
    
    
    
    
    
    733Other variable rate term loans
    
    
    43,920
    
    
    
    
    
    
    
    43,920
    
    
    
    (21,960
    )
    
    
    21,960Subtotal
    
    
    1,064,063
    
    
    
    507,500
    
    
    
    1,571,563
    
    
    $
    (297,426
    )
    
    $
    1,274,137Participated to others
    
    
    (193,861
    )
    
    
    (103,565
    )
    
    
    (297,426
    )Total principal owed to Huntington
    
    
    870,202
    
    
    
    403,935
    
    
    
    1,274,137Amounts charged off
    
    
    (116,776
    )
    
    
    
    
    
    
    (116,776
    )Total book value of loans
    
    $
    753,426
    
    
    $
    403,935
    
    
    $
    1,157,361
   58




---



##### 



Note 4  Investment Securities
  March 31, 2008
    
    December 31, 2007
    
    March 31, 2007Amortized
    
    
    
    
    

    
    
    Amortized
    
    
    
    
    
    
    
    Amortized(in thousands of dollars)
    
    Cost
    
    Fair Value
    
    Cost
    
    Fair Value
    
    Cost
    
    Fair ValueU.S. TreasuryUnder 1 year
    
    $
    200
    
    
    $
    203
    
    
    $
    299
    
    
    $
    303
    
    
    $
    130
    
    
    $
    1291-5 years
    
    
    250
    
    
    
    255
    
    
    
    250
    
    
    
    253
    
    
    
    648
    
    
    
    6506-10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Over 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total U.S. Treasury
    
    
    450
    
    
    
    458
    
    
    
    549
    
    
    
    556
    
    
    
    778
    
    
    
    779Federal agenciesMortgage backed securitiesUnder 1 year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,249
    
    
    
    2,2481-5 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,361
    
    
    
    11,4326-10 years
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    3,455
    
    
    
    3,460Over 10 years
    
    
    1,485,348
    
    
    
    1,497,661
    
    
    
    1,559,387
    
    
    
    1,571,991
    
    
    
    1,222,972
    
    
    
    1,230,560Total mortgage-backed Federal agencies
    
    
    1,485,349
    
    
    
    1,497,662
    
    
    
    1,559,388
    
    
    
    1,571,992
    
    
    
    1,240,037
    
    
    
    1,247,700Other agenciesUnder 1 year
    
    
    100,839
    
    
    
    100,797
    
    
    
    101,367
    
    
    
    101,412
    
    
    
    
    
    
    
    1-5 years
    
    
    66,477
    
    
    
    67,042
    
    
    
    62,121
    
    
    
    64,010
    
    
    
    149,324
    
    
    
    149,6286-10 years
    
    
    10,017
    
    
    
    10,278
    
    
    
    6,707
    
    
    
    6,802
    
    
    
    
    
    
    
    Over 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total other Federal agencies
    
    
    177,333
    
    
    
    178,117
    
    
    
    170,195
    
    
    
    172,224
    
    
    
    149,324
    
    
    
    149,628Total Federal agencies
    
    
    1,662,682
    
    
    
    1,675,779
    
    
    
    1,729,583
    
    
    
    1,744,216
    
    
    
    1,389,361
    
    
    
    1,397,328Municipal securitiesUnder 1 year
    
    
    61
    
    
    
    61
    
    
    
    61
    
    
    
    61
    
    
    
    42
    
    
    
    421-5 years
    
    
    18,957
    
    
    
    19,581
    
    
    
    14,814
    
    
    
    15,056
    
    
    
    9,726
    
    
    
    9,7346-10 years
    
    
    202,679
    
    
    
    205,501
    
    
    
    179,423
    
    
    
    181,018
    
    
    
    164,760
    
    
    
    164,160Over 10 years
    
    
    492,953
    
    
    
    490,613
    
    
    
    497,086
    
    
    
    501,191
    
    
    
    407,244
    
    
    
    411,275Total municipal securities
    
    
    714,650
    
    
    
    715,756
    
    
    
    691,384
    
    
    
    697,326
    
    
    
    581,772
    
    
    
    585,211Private label CMOUnder 1 year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1-5 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6-10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Over 10 years
    
    
    760,510
    
    
    
    729,368
    
    
    
    784,339
    
    
    
    783,047
    
    
    
    551,070
    
    
    
    556,342Total private label CMO
    
    
    760,510
    
    
    
    729,368
    
    
    
    784,339
    
    
    
    783,047
    
    
    
    551,070
    
    
    
    556,342Asset backed securitiesUnder 1 year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1-5 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,000
    
    
    
    30,0196-10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Over 10 years
    
    
    856,877
    
    
    
    750,695
    
    
    
    869,654
    
    
    
    834,489
    
    
    
    987,045
    
    
    
    987,849Total asset backed securities
    
    
    856,877
    
    
    
    750,695
    
    
    
    869,654
    
    
    
    834,489
    
    
    
    1,017,045
    
    
    
    1,017,868OtherUnder 1 year
    
    
    1,701
    
    
    
    1,701
    
    
    
    2,750
    
    
    
    2,744
    
    
    
    6,500
    
    
    
    6,4871-5 years
    
    
    11,848
    
    
    
    11,896
    
    
    
    10,399
    
    
    
    10,401
    
    
    
    4,146
    
    
    
    4,1336-10 years
    
    
    598
    
    
    
    599
    
    
    
    446
    
    
    
    452
    
    
    
    642
    
    
    
    644Over 10 years
    
    
    64
    
    
    
    113
    
    
    
    3,606
    
    
    
    4,004
    
    
    
    44
    
    
    
    86Non-marketable equity securities
    
    
    417,601
    
    
    
    417,601
    
    
    
    414,583
    
    
    
    414,583
    
    
    
    150,754
    
    
    
    150,754Marketable equity securities
    
    
    8,829
    
    
    
    9,040
    
    
    
    8,368
    
    
    
    8,353
    
    
    
    4,698
    
    
    
    5,044Total other
    
    
    440,641
    
    
    
    440,950
    
    
    
    440,152
    
    
    
    440,537
    
    
    
    166,784
    
    
    
    167,148Total investment securities
    
    $
    4,435,810
    
    
    $
    4,313,006
    
    
    $
    4,515,661
    
    
    $
    4,500,171
    
    
    $
    3,706,810
    
    
    $
    3,724,676
 59




---



##### 



Note 5
 Loan Servicing Rights
 Residential Mortgage Loans
  Accounting for Servicing of Financial Assets  an amendment of FASB Statement No. 140
   Three Months EndedMarch 31,(in thousands)
    
    2008
    
    
    2007Fair value, beginning of period
    
    $
    207,894
    
    
    $
    131,104New servicing assets created
    
    
    8,919
    
    
    
    8,436Change in fair value during the period due to:Time decay (1)
    
    
    (1,665
    )
    
    
    (1,076
    )Payoffs (2)
    
    
    (5,249
    )
    
    
    (2,562
    )Changes in valuation inputs or assumptions (3)
    
    
    (18,093
    )
    
    
    (1,057
    )Fair value, end of period
    
    $
    191,806
    
    
    $
    134,845
 
 (1)
    
    Represents decrease in value due to passage of time, including the impact from both
regularly scheduled loan principal payments and partial loan paydowns.(2)
    
    Represents decrease in value associated with loans that paid off during the period.(3)
    
    Represents change in value resulting primarily from market-driven changes in
interest rates. 60




---



##### 



Decline in fair valuedue to10%
    
    
    20%adverse
    
    
    adverse(in thousands)
    
    Actual
    
    
    change
    
    
    changeConstant pre-payment rate
    
    
    15.66
    %
    
    $
    (9,485
    )
    
    $
    (18,013
    )Discount rate
    
    
    9.28
    
    
    
    (6,076
    )
    
    
    (11,778
    )
   Note 6
 Goodwill and Other Intangible Assets
  Regional
    
    
    Dealer
    
    
    
    
    
    
    Treasury/
    
    
    Huntington(in thousands)
    
    Banking
    
    
    Sales
    
    
    PFCMG
    
    
    Other
    
    
    ConsolidatedBalance, January 1, 2008
    
    $
    2,906,155
    
    
    $
    
    
    
    $
    87,517
    
    
    $
    65,661
    
    
    $
    3,059,333Adjustments
    
    
    (29,348
    )
    
    
    
    
    
    
    
    
    
    
    17,422
    
    
    
    (11,926
    )Balance, March 31, 2008
    
    $
    2,876,807
    
    
    $
    
    
    
    $
    87,517
    
    
    $
    83,083
    
    
    $
    3,047,407
  Goodwill and Other Intangible Assets, st
 61




---



##### 



Gross
    
    Accumulated
    
    Net(in thousands)
    
    Carrying Amount
    
    Amortization
    
    Carrying ValueMarch 31, 2008Core deposit intangible
    
    $
    373,300
    
    
    $
    (62,334
    )
    
    $
    310,966Customer relationship
    
    
    104,574
    
    
    
    (9,490
    )
    
    
    95,084Other
    
    
    23,655
    
    
    
    (20,650
    )
    
    
    3,005Total other intangible assets
    
    $
    501,529
    
    
    $
    (92,474
    )
    
    $
    409,055December 31, 2007Core deposit intangible
    
    $
    373,300
    
    
    $
    (46,057
    )
    
    $
    327,243Customer relationship
    
    
    104,574
    
    
    
    (7,055
    )
    
    
    97,519Other
    
    
    23,655
    
    
    
    (20,447
    )
    
    
    3,208Total other intangible assets
    
    $
    501,529
    
    
    $
    (73,559
    )
    
    $
    427,970March 31, 2007Core deposit intangible
    
    $
    45,000
    
    
    $
    (9,378
    )
    
    $
    35,622Customer relationship
    
    
    19,819
    
    
    
    (2,096
    )
    
    
    17,723Other
    
    
    23,655
    
    
    
    (19,835
    )
    
    
    3,820Total other intangible assets
    
    $
    88,474
    
    
    $
    (31,309
    )
    
    $
    57,165
  Amortization(in thousands)
    
    Expense2008
    
    $
    56,7052009
    
    
    67,3662010
    
    
    59,5972011
    
    
    52,6002012
    
    
    45,5032013
    
    
    40,005
 Note 7  Shareholders Equity
 Issuance of Convertible Preferred Stock
    62




---



##### 



Change in par value and shares authorized:
  Share Repurchase Program:
   Note 8  Earnings per Share
  Three Months EndedMarch 31,(in thousands, except per share amounts)
    
    2008
    
    2007Net income
    
    $
    127,068
    
    
    $
    95,726Average common shares outstanding
    
    
    366,235
    
    
    
    235,586Dilutive potential common shares
    
    
    973
    
    
    
    3,168Diluted average common shares outstanding
    
    
    367,208
    
    
    
    238,754Earnings per shareBasic
    
    $
    0.35
    
    
    $
    0.41Diluted
    
    
    0.35
    
    
    
    0.40
   63




---



##### 



Note 9  Share-based Compensation
    Three Months EndedMarch 31,2008
    
    2007AssumptionsRisk-free interest rate
    
    
    3.22
    %
    
    
    4.57
    %Expected dividend yield
    
    
    8.05
    
    
    
    4.45Expected volatility of Huntingtons common stock
    
    
    21.0
    
    
    
    21.1Expected option term (years)
    
    
    6.0
    
    
    
    6.0Weighted-average grant date fair value per share
    
    $
    0.85
    
    
    $
    3.75
   Weighted-Weighted-
    
    AverageAverage
    
    Remaining
    
    AggregateExercise
    
    Contractual
    
    Intrinsic(in thousands, except year and per share amounts)
    
    Options
    
    Price
    
    Life (Years)
    
    ValueOutstanding at January 1, 2008
    
    
    28,065
    
    
    $
    20.57Granted
    
    
    16
    
    
    
    13.08Exercised
    
    
    
    
    
    
    Forfeited/expired
    
    
    (277
    )
    
    
    22.77Outstanding at March 31, 2008
    
    
    27,804
    
    
    $
    20.54
    
    
    
    4.2
    
    
    $
    4Exercisable at March 31, 2008
    
    
    23,943
    
    
    $
    20.31
    
    
    
    4.0
    
    
    $
    4
   64




---



##### 



Weighted-AverageRestricted
    
    Grant DateStock
    
    Fair Value(in thousands, except per share amounts)
    
    Units
    
    Per ShareNonvested at January 1, 2008
    
    
    1,086
    
    
    $
    21.35Granted
    
    
    3
    
    
    
    13.08Vested
    
    
    (9
    )
    
    
    20.77Forfeited
    
    
    (18
    )
    
    
    20.85Nonvested at March 31, 2008
    
    
    1,062
    
    
    $
    21.34
   Note 10  Fair Values of Assets and Liabilities
   Net IncreaseAs of
    
    
    to Retained
    
    
    As ofJanuary 1, 2008
    
    
    Earnings
    
    
    January 1, 2008(in thousands)
    
    prior to Adoption
    
    
    upon Adoption
    
    
    after AdoptionMortgage loans held for sale
    
    $
    420,895
    
    
    $
    2,294
    
    
    $
    423,189Tax impact
    
    
    
    
    
    
    (803
    )Cumulative effect adjustment, net of tax
    
    
    
    
    
    $
    1,491
   65




---



##### 



Level 1
 Level 2
 Level 3
   Securities
   Mortgage loans held for sale
  Mortgage servicing rights
  Mezzanine lending loans
  Equity Investments
  66




---



##### 



Derivatives
   Fair Value Measurements at Reporting Date Using
    
    Netting
    
    Balance at(in thousands)
    
    Level 1
    
    Level 2
    
    Level 3
    
    Adjustments(1)
    
    March 31, 2008AssetsTrading account securities
    
    $
    34,544
    
    
    $
    1,212,333
    
    
    
    
    
    
    
    
    
    
    $
    1,246,877Investment securities
    
    
    195,933
    
    
    
    2,948,777
    
    
    $
    750,695
    
    
    
    
    
    
    
    3,895,405Mortgage loans held for sale
    
    
    
    
    
    
    565,913
    
    
    
    
    
    
    
    
    
    
    
    565,913Mezzanine lending loans
    
    
    
    
    
    
    
    
    
    
    221,516
    
    
    
    
    
    
    
    221,516Mortgage servicing rights
    
    
    
    
    
    
    
    
    
    
    191,806
    
    
    
    
    
    
    
    191,806Derivative assets
    
    
    5,042
    
    
    
    315,238
    
    
    
    3,107
    
    
    $
    (43,234
    )
    
    
    280,153Equity investments
    
    
    
    
    
    
    
    
    
    
    35,345
    
    
    
    
    
    
    
    35,345LiabilitiesDerivative liabilities
    
    
    6,037
    
    
    
    191,324
    
    
    
    159
    
    
    
    (138,381
    )
    
    
    59,139
 
 (1)
    
    Amounts represent the impact of legally enforceable master netting agreements that
allow the Company to settle positive and negative positions and cash collateral held or placed with
the same counterparties.  MezzanineMortgage
    
    Net Interest
    
    lending
    
    Investment
    
    Equity(in thousands)
    
    Servicing Rights
    
    Rate Locks
    
    loans
    
    Securities
    
    investmentsBalance, January 1, 2008
    
    $
    207,894
    
    
    $
    (46
    )
    
    $
    224,008
    
    
    $
    834,489
    
    
    $
    41,516Total gains/losses:Included in earnings
    
    
    (16,737
    )
    
    
    2,989
    
    
    
    179
    
    
    
    (3,317
    )
    
    
    (8,777
    )Included in
other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (71,017
    )Purchases, issuances, and settlements
    
    
    649
    
    
    
    
    
    
    
    (2,671
    )
    
    
    (9,460
    )
    
    
    2,606Transfers in/out of Level 3
    
    
    
    
    
    
    5Balance, March 31, 2008
    
    $
    191,806
    
    
    $
    2,948
    
    
    $
    221,516
    
    
    $
    750,695
    
    
    $
    35,345
 67




---



##### 



Mortgage
    
    
    
    
    
    MezzanineServicing
    
    Net interest
    
    lending
    
    Investment
    
    Equity(in thousands)
    
    Rights
    
    rate locks
    
    loans
    
    securities
    
    Investments
    
    TotalClassification of gains and losses
in earnings for the three months
ended March 31, 2008:Mortgage banking income (loss)
    
    $
    (16,737
    )
    
    $
    2,989
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (13,748
    )Securities gains (losses)
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (3,317
    )
    
    
    
    
    
    
    (3,317
    )Other expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    (8,777
    )
    
    
    (8,777
    )Provision for credit losses
    
    
    
    
    
    
    
    
    
    $
    179
    
    
    
    
    
    
    
    
    
    
    
    179Total
    
    $
    (16,737
    )
    
    $
    2,989
    
    
    $
    179
    
    
    $
    (3,317
    )
    
    $
    (8,777
    )
    
    $
    (25,663
    )Change in unrealized gains or
losses
to assets and liabilities still
held
at March 31, 2008:
    
    $
    (16,737
    )
    
    $
    2,994
    
    
    $
    179
    
    
    $
    (74,334
    )
    
    $
    (2,877
    )
    
    $
    (90,775
    )
  Note 11  Benefit Plans
   Employers Accounting for Defined
Benefit Pension and Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106,
and 132R (Statement No. 158)
 68




---



##### 



Pension Benefits
    
    Post Retirement BenefitsThree Months Ended
    
    Three Months EndedMarch 31,
    
    March 31,(in thousands)
    
    2008
    
    2007
    
    2008
    
    2007Service cost
    
    $
    5,954
    
    
    $
    4,445
    
    
    $
    420
    
    
    $
    374Interest cost
    
    
    6,761
    
    
    
    5,967
    
    
    
    903
    
    
    
    667Expected return on plan assets
    
    
    (9,786
    )
    
    
    (9,120
    )
    
    
    
    
    
    
    Amortization of transition asset
    
    
    1
    
    
    
    1
    
    
    
    276
    
    
    
    276Amortization of prior service cost
    
    
    79
    
    
    
    1
    
    
    
    95
    
    
    
    142Settlements
    
    
    450
    
    
    
    1,000
    
    
    
    
    
    
    
    Recognized net actuarial loss (gain)
    
    
    1,038
    
    
    
    3,115
    
    
    
    (274
    )
    
    
    (81
    )Benefit expense
    
    $
    4,497
    
    
    $
    5,409
    
    
    $
    1,420
    
    
    $
    1,378
    Note 12  Derivative Financial Instruments
 Derivatives used in Asset and Liability Management Activities
  Fair Value
    
    Cash Flow(in thousands )
    
    Hedges
    
    Hedges
    
    TotalInstruments associated with:Loans
    
    $
    
    
    
    $
    2,555,000
    
    
    $
    2,555,000Deposits
    
    
    360,000
    
    
    
    150,000
    
    
    
    510,000Federal Home Loan Bank advances
    
    
    
    
    
    
    525,000
    
    
    
    525,000Subordinated notes
    
    
    750,000
    
    
    
    
    
    
    
    750,000Other long-term debt
    
    
    50,000
    
    
    
    
    
    
    
    50,000Total notional value at March 31, 2008
    
    $
    1,160,000
    
    
    $
    3,230,000
    
    
    $
    4,390,000
 69




---



##### 



Average
    
    
    
    
    
    Weighted-AverageNotional
    
    Maturity
    
    Fair
    
    Rate(in thousands )
    
    Value
    
    (years)
    
    Value
    
    Receive
    
    PayAsset conversion swapsReceive fixed  generic
    
    $
    2,555,000
    
    
    
    2.5
    
    
    $
    21,955
    
    
    
    2.90
    %
    
    
    2.82
    %Total asset conversion swaps
    
    
    2,555,000
    
    
    
    2.5
    
    
    
    21,955
    
    
    
    2.90
    
    
    
    2.82Liability conversion swapsReceive fixed  generic
    
    
    845,000
    
    
    
    8.0
    
    
    
    66,903
    
    
    
    5.27
    
    
    
    3.52Receive fixed  callable
    
    
    315,000
    
    
    
    5.7
    
    
    
    961
    
    
    
    4.94
    
    
    
    3.24Pay fixed  generic
    
    
    675,000
    
    
    
    1.2
    
    
    
    (20,372
    )
    
    
    2.97
    
    
    
    4.95Total liability conversion swaps
    
    
    1,835,000
    
    
    
    5.1
    
    
    
    47,492
    
    
    
    4.37
    
    
    
    3.99Total swap portfolio
    
    
    4,390,000
    
    
    
    3.6
    
    
    
    69,447
    
    
    
    3.51
    %
    
    
    3.31
    %Weighted-AverageStrike RatePurchased CapsInterest rate caps
    
    
    500,000
    
    
    
    0.8
    
    
    
    1
    
    
    
    
    
    5.50
    %Total purchased caps
    
    $
    500,000
    
    
    
    0.8
    
    
    $
    1
    
    
    
    
    
    5.50
    %
   Derivatives Used in Mortgage Banking Activities
  March 31,
    
    December 31,
    
    March 31,(in thousands)
    
    2008
    
    2007
    
    2007Derivative assets:Interest rate lock agreements
    
    $
    3,107
    
    
    $
    753
    
    
    $
    383Forward trades and options
    
    
    2,460
    
    
    
    260
    
    
    
    854Total derivative assets
    
    
    5,567
    
    
    
    1,013
    
    
    
    1,237Derivative liabilities:Interest rate lock agreements
    
    
    (159
    )
    
    
    (800
    )
    
    
    (808
    )Forward trades and options
    
    
    (6,037
    )
    
    
    (4,262
    )
    
    
    (417
    )Total derivative liabilities
    
    
    (6,196
    )
    
    
    (5,062
    )
    
    
    (1,225
    )Net derivative (liability) asset
    
    $
    (629
    )
    
    $
    (4,049
    )
    
    $
    12
 70




---



##### 



Derivatives Used in Trading Activities
   .
  Note 13  Commitments and Contingent Liabilities
 Commitments to extend credit :
  March 31,
    
    December 31,
    
    March 31,(in millions)
    
    2008
    
    2007
    
    2007Contract amount represents
credit riskCommitments to extend creditCommercial
    
    $
    6,727
    
    
    $
    6,756
    
    
    $
    4,385Consumer
    
    
    4,788
    
    
    
    4,680
    
    
    
    3,482Commercial real estate
    
    
    2,337
    
    
    
    2,565
    
    
    
    1,664Standby letters of credit
    
    
    1,611
    
    
    
    1,549
    
    
    
    1,197
  71




---



##### 



Commitments to sell loans:
  Litigation:
      72




---



##### 



Note 14  Segment Reporting
   Regional Banking:
 Dealer Sales:
 Private Financial and Capital Markets Group (PFCMG):
 Treasury / Other:
 73




---



##### 



Three Months Ended March 31,Income Statements
    
    Regional
    
    Dealer
    
    
    
    
    
    Treasury/
    
    Huntington(in thousands )
    
    Banking
    
    Sales
    
    PFCMG
    
    Other
    
    Consolidated2008Net interest income
    
    $
    360,562
    
    
    $
    36,176
    
    
    $
    24,687
    
    
    $
    (44,601
    )
    
    $
    376,824Provision for credit losses
    
    
    (69,734
    )
    
    
    (17,081
    )
    
    
    (1,835
    )
    
    
    
    
    
    
    (88,650
    )Non-interest income
    
    
    122,287
    
    
    
    12,796
    
    
    
    44,493
    
    
    
    56,176
    
    
    
    235,752Non-interest expense
    
    
    (234,425
    )
    
    
    (26,166
    )
    
    
    (47,814
    )
    
    
    (62,076
    )
    
    
    (370,481
    )Income taxes
    
    
    (62,542
    )
    
    
    (2,004
    )
    
    
    (6,836
    )
    
    
    45,005
    
    
    
    (26,377
    )Operating / reported net income
    
    $
    116,148
    
    
    $
    3,721
    
    
    $
    12,695
    
    
    $
    (5,496
    )
    
    $
    127,0682007Net interest income
    
    $
    215,002
    
    
    $
    31,641
    
    
    $
    19,100
    
    
    $
    (10,188
    )
    
    $
    255,555Provision for credit losses
    
    
    (22,456
    )
    
    
    (7,745
    )
    
    
    795
    
    
    
    
    
    
    
    (29,406
    )Non-interest income
    
    
    89,457
    
    
    
    13,181
    
    
    
    31,330
    
    
    
    11,209
    
    
    
    145,177Non-interest expense
    
    
    (162,751
    )
    
    
    (19,587
    )
    
    
    (37,837
    )
    
    
    (21,897
    )
    
    
    (242,072
    )Income taxes
    
    
    (41,738
    )
    
    
    (6,122
    )
    
    
    (4,686
    )
    
    
    19,018
    
    
    
    (33,528
    )Operating / reported net income
    
    $
    77,514
    
    
    $
    11,368
    
    
    $
    8,702
    
    
    $
    (1,858
    )
    
    $
    95,726
 Assets at
    
    Deposits atMarch 31,
    
    December 31,
    
    March 31,
    
    March 31,
    
    December 31,
    
    March 31,(in millions)
    
    2008
    
    2007
    
    2007
    
    2008
    
    2007
    
    2007Regional Banking
    
    $
    34,721
    
    
    $
    34,360
    
    
    $
    21,154
    
    
    $
    33,100
    
    
    $
    32,626
    
    
    $
    20,637Dealer Sales
    
    
    6,179
    
    
    
    5,823
    
    
    
    5,173
    
    
    
    56
    
    
    
    58
    
    
    
    55PFCMG
    
    
    3,048
    
    
    
    2,963
    
    
    
    2,236
    
    
    
    1,543
    
    
    
    1,626
    
    
    
    1,172Treasury / Other
    
    
    12,104
    
    
    
    11,551
    
    
    
    6,416
    
    
    
    3,417
    
    
    
    3,433
    
    
    
    2,722Total
    
    $
    56,052
    
    
    $
    54,697
    
    
    $
    34,979
    
    
    $
    38,116
    
    
    $
    37,743
    
    
    $
    24,586
 74