##### 



Exhibit
99.1
 Huntington Bancshares Incorporated
 
 Condensed Consolidated Balance Sheets  (Unaudited)
 2007
    
    2006(in thousands, except number of shares)
    
    March 31,
    
    December 31,
    
    March 31,AssetsCash and due from banks
    
    $
    867,256
    
    
    $
    1,080,163
    
    
    $
    797,258Federal funds sold and securities
purchased under resale agreements
    
    
    701,951
    
    
    
    440,584
    
    
    
    349,098Interest bearing deposits in banks
    
    
    100,416
    
    
    
    74,168
    
    
    
    23,204Trading account securities
    
    
    76,631
    
    
    
    36,056
    
    
    
    111,208Loans held for sale
    
    
    277,538
    
    
    
    270,422
    
    
    
    311,138Investment securities
    
    
    3,724,676
    
    
    
    4,362,924
    
    
    
    5,034,359Loans and leases
    
    
    26,266,747
    
    
    
    26,153,425
    
    
    
    26,145,589Allowance for loan and lease losses
    
    
    (282,976
    )
    
    
    (272,068
    )
    
    
    (283,839
    )Net loans and leases
    
    
    25,983,771
    
    
    
    25,881,357
    
    
    
    25,861,750Bank owned life insurance
    
    
    1,097,986
    
    
    
    1,089,028
    
    
    
    1,060,305Premises and equipment
    
    
    377,687
    
    
    
    372,772
    
    
    
    375,740Goodwill
    
    
    569,779
    
    
    
    570,876
    
    
    
    579,246Other intangible assets
    
    
    57,165
    
    
    
    59,487
    
    
    
    60,563Accrued income and other assets
    
    
    1,144,443
    
    
    
    1,091,182
    
    
    
    1,102,040Total Assets
    
    $
    34,979,299
    
    
    $
    35,329,019
    
    
    $
    35,665,909Liabilities and Shareholders Equity
LiabilitiesDeposits
    
    $
    24,585,893
    
    
    $
    25,047,770
    
    
    $
    24,555,163Short-term borrowings
    
    
    1,577,732
    
    
    
    1,676,189
    
    
    
    1,687,536Federal Home Loan Bank advances
    
    
    1,197,411
    
    
    
    996,821
    
    
    
    1,658,486Other long-term debt
    
    
    2,173,818
    
    
    
    2,229,140
    
    
    
    2,035,576Subordinated notes
    
    
    1,280,870
    
    
    
    1,286,657
    
    
    
    1,283,359Deferred federal income tax liability
    
    
    396,005
    
    
    
    443,921
    
    
    
    685,559Accrued expenses and other liabilities
    
    
    716,210
    
    
    
    634,195
    
    
    
    680,050Total Liabilities
    
    
    31,927,939
    
    
    
    32,314,693
    
    
    
    32,585,729Shareholders equityPreferred stock  authorized 6,617,808 shares;
none outstanding
    
    
    
    
    
    
    
    
    
    
    ---Common stock  without par value; authorized
500,000,000 shares; issued 257,866,255
shares; outstanding 235,713,500; 235,474,366
and 245,183,441 shares, respectively
    
    
    2,563,426
    
    
    
    2,560,569
    
    
    
    2,548,185Less 22,152,755; 22,391,889 and 12,682,814
treasury shares at cost, respectively
    
    
    (501,578
    )
    
    
    (506,946
    )
    
    
    (273,120
    )Accumulated other comprehensive income (loss):Unrealized gains (losses) on investment securities
    
    
    11,562
    
    
    
    14,254
    
    
    
    (52,710
    )Unrealized gains on cash flow hedging derivatives
    
    
    12,901
    
    
    
    17,008
    
    
    
    24,559Pension and
other postretirement benefit adjustments
    
    
    (83,972
    )
    
    
    (86,328
    )
    
    
    (3,283
    )Retained earnings
    
    
    1,049,021
    
    
    
    1,015,769
    
    
    
    836,549Total Shareholders Equity
    
    
    3,051,360
    
    
    
    3,014,326
    
    
    
    3,080,180Total Liabilities and Shareholders Equity
    
    $
    34,979,299
    
    
    $
    35,329,019
    
    
    $
    35,665,909
 See notes to unaudited condensed consolidated financial statements
 3




---



##### 



Huntington Bancshares Incorporated
 
 Condensed Consolidated Statements of Income  (Unaudited)
 Three Months EndedMarch 31,(in thousands, except per share amounts)
    
    2007
    
    2006Interest and fee incomeLoans and leasesTaxable
    
    $
    461,141
    
    
    $
    399,346Tax-exempt
    
    
    471
    
    
    
    509Investment securitiesTaxable
    
    
    55,115
    
    
    
    52,108Tax-exempt
    
    
    6,093
    
    
    
    5,712Other
    
    
    12,129
    
    
    
    7,112Total interest income
    
    
    534,949
    
    
    
    464,787Interest expensesDeposits
    
    
    196,723
    
    
    
    148,314Short-term borrowings
    
    
    19,837
    
    
    
    14,665Federal Home Loan Bank advances
    
    
    12,510
    
    
    
    14,488Subordinated notes and other long-term debt
    
    
    50,324
    
    
    
    43,640Total interest expense
    
    
    279,394
    
    
    
    221,107Net interest income
    
    
    255,555
    
    
    
    243,680Provision for credit losses
    
    
    29,406
    
    
    
    19,540Net interest income after provision for credit losses
    
    
    226,149
    
    
    
    224,140Service charges on deposit accounts
    
    
    44,793
    
    
    
    41,222Trust services
    
    
    25,894
    
    
    
    21,278Brokerage and insurance income
    
    
    16,082
    
    
    
    15,193Other service charges and fees
    
    
    13,208
    
    
    
    11,509Bank owned life insurance income
    
    
    10,851
    
    
    
    10,242Mortgage banking income
    
    
    9,351
    
    
    
    13,194Gains on sales of automobile loans
    
    
    1,144
    
    
    
    448Securities gains (losses)
    
    
    104
    
    
    
    (20
    )Other income
    
    
    23,750
    
    
    
    46,468Total non-interest income
    
    
    145,177
    
    
    
    159,534Personnel costs
    
    
    134,639
    
    
    
    131,557Outside data processing and other services
    
    
    21,814
    
    
    
    19,851Net occupancy
    
    
    19,908
    
    
    
    17,966Equipment
    
    
    18,219
    
    
    
    16,503Marketing
    
    
    7,696
    
    
    
    7,301Professional services
    
    
    6,482
    
    
    
    5,365Telecommunications
    
    
    4,126
    
    
    
    4,825Printing and supplies
    
    
    3,242
    
    
    
    3,074Amortization of intangibles
    
    
    2,520
    
    
    
    1,075Other expense
    
    
    23,426
    
    
    
    30,898Total non-interest expense
    
    
    242,072
    
    
    
    238,415Income before income taxes
    
    
    129,254
    
    
    
    145,259Provision for income taxes
    
    
    33,528
    
    
    
    40,803Net income
    
    $
    95,726
    
    
    $
    104,456Average common shares  basic
    
    
    235,586
    
    
    
    230,968Average common shares  diluted
    
    
    238,754
    
    
    
    234,363Per common shareNet income  basic
    
    $
    0.41
    
    
    $
    0.45Net income  diluted
    
    
    0.40
    
    
    
    0.45Cash dividends declared
    
    
    0.265
    
    
    
    0.250
 See notes to unaudited condensed consolidated financial statements
 4




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##### 



Huntington Bancshares Incorporated
 
 Condensed Consolidated Statements of Changes in Shareholders Equity  (Unaudited)
 AccumulatedOtherPreferred Stock
    
    
    Common Stock
    
    
    Treasury Stock
    
    
    Comprehensive
    
    
    Retained(in thousands)
    
    Shares
    
    
    Amount
    
    
    Shares
    
    
    Amount
    
    
    Shares
    
    
    Amount
    
    
    Income (Loss)
    
    
    Earnings
    
    
    TotalThree Months Ended March 31, 2006:Balance, beginning of period
    
    
    
    
    
    $
    
    
    
    
    257,866
    
    
    $
    2,491,326
    
    
    
    (33,760
    )
    
    $
    (693,576
    )
    
    $
    (22,093
    )
    
    $
    781,844
    
    
    $
    2,557,501Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    104,456
    
    
    
    104,456Unrealized net losses on investment securities
arising during the period, net of reclassification (1)
for net realized losses, net of tax of ($9,857).
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,694
    )
    
    
    
    
    
    
    (18,694
    )Unrealized gains on cash flow hedging derivatives,
net of tax of $5,036.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,353
    
    
    
    
    
    
    
    9,353Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    95,115Cumulative effect of change in accounting principle
for servicing financial assets, net of tax of $6,521
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,110
    
    
    
    12,110Cash dividends declared ($0.25 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (61,861
    )
    
    
    (61,861
    )Shares issued pursuant to acquisition
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    53,366
    
    
    
    25,350
    
    
    
    522,390
    
    
    
    
    
    
    
    
    
    
    
    575,756Recognition of the fair value of share-based
compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,273
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,273Treasury shares purchased
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,831
    )
    
    
    (113,326
    )
    
    
    
    
    
    
    
    
    
    
    (113,326
    )Stock options exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (782
    )
    
    
    569
    
    
    
    11,671
    
    
    
    
    
    
    
    
    
    
    
    10,889Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    (11
    )
    
    
    (279
    )
    
    
    
    
    
    
    
    
    
    
    (277
    )Balance, end of period
    
    
    
    
    
    
    
    
    
    
    257,866
    
    
    
    2,548,185
    
    
    
    (12,683
    )
    
    
    (273,120
    )
    
    
    (31,434
    )
    
    
    836,549
    
    
    
    3,080,180Three Months Ended March 31, 2007:Balance, beginning of period
    
    
    
    
    
    
    
    
    
    
    257,866
    
    
    
    2,560,569
    
    
    
    (22,392
    )
    
    
    (506,946
    )
    
    
    (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 ($1,255)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,692
    )
    
    
    
    
    
    
    (2,692
    )Unrealized losses on cash flow hedging derivatives,
net of tax of ($2,211)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,107
    )
    
    
    
    
    
    
    (4,107
    )Pension and
other postretirement benefit adjustments: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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,940Stock options exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,008
    )
    
    
    238
    
    
    
    5,355
    
    
    
    
    
    
    
    
    
    
    
    4,347Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (75
    )
    
    
    1
    
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    (62
    )Balance, end of period
    
    
    
    
    
    $
    
    
    
    
    257,866
    
    
    $
    2,563,426
    
    
    
    (22,153
    )
    
    $
    (501,578
    )
    
    $
    (59,509
    )
    
    $
    1,049,021
    
    
    $
    3,051,360
 (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, 2007 and 2006, the reclassification adjustments were $104, net of tax of ($36), and ($20), net of tax of $7, respectively.
 See notes to unaudited condensed consolidated financial statements.
 5




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##### 



Huntington Bancshares Incorporated
 
 Condensed Consolidated Statements of Cash Flows
 (Unaudited)
 Three Months EndedMarch 31,(in thousands)
    
    2007
    
    2006Operating activitiesNet income
    
    $
    95,726
    
    
    $
    104,456Adjustments to reconcile net income to net cash provided by operating activites:Provision for credit losses
    
    
    29,406
    
    
    
    19,540Depreciation and amortization
    
    
    21,226
    
    
    
    31,614Increase in accrued income taxes
    
    
    134,384
    
    
    
    49,020Deferred income tax benefit
    
    
    (46,708
    )
    
    
    (59,449
    )Increase in trading account securities
    
    
    (40,575
    )
    
    
    (23,845
    )Originations of loans held for sale
    
    
    (600,113
    )
    
    
    (616,943
    )Principal payments on and proceeds from loans held for sale
    
    
    584,561
    
    
    
    600,149Other, net
    
    
    3,024
    
    
    
    (79,288
    )Net cash provided by operating activities
    
    
    180,931
    
    
    
    25,254Investing activities(Increase) decrease in interest bearing deposits in banks
    
    
    (26,248
    )
    
    
    2,283Net cash received in acquisitions
    
    
    
    
    
    
    66,507Proceeds from:Maturities and calls of investment securities
    
    
    118,718
    
    
    
    110,777Sales of investment securities
    
    
    426,156
    
    
    
    61,687Purchases of investment securities
    
    
    (21,620
    )
    
    
    (462,392
    )Proceeds from sales of loans
    
    
    108,698
    
    
    
    Net loan and lease originations, excluding sales
    
    
    (240,481
    )
    
    
    (28,721
    )Proceeds from sale of operating lease assets
    
    
    12,323
    
    
    
    47,952Purchases of premises and equipment
    
    
    (18,563
    )
    
    
    (7,476
    )Other, net
    
    
    2,857
    
    
    
    (4,589
    )Net cash provided by (used for) investing activities
    
    
    361,840
    
    
    
    (213,972
    )Financing activities(Decrease) increase in deposits
    
    
    (464,425
    )
    
    
    449,778Decrease in short-term borrowings
    
    
    (98,457
    )
    
    
    (280,864
    )Proceeds from issuance of subordinated notes
    
    
    
    
    
    
    250,000Proceeds from Federal Home Loan Bank advances
    
    
    200,600
    
    
    
    1,407,050Maturity of Federal Home Loan Bank advances
    
    
    (10
    )
    
    
    (1,007,161
    )Maturity of long-term debt
    
    
    (70,023
    )
    
    
    (380,390
    )Dividends paid on common stock
    
    
    (61,540
    )
    
    
    (41,678
    )Repurchases of common stock
    
    
    
    
    
    
    (113,326
    )Other, net
    
    
    (456
    )
    
    
    10,889Net cash (used for) provided by financing activities
    
    
    (494,311
    )
    
    
    294,298Increase in cash and cash equivalents
    
    
    48,460
    
    
    
    105,580Cash and cash equivalents at beginning of period
    
    
    1,520,747
    
    
    
    1,040,776Cash and cash equivalents at end of period
    
    $
    1,569,207
    
    
    $
    1,146,356Supplemental disclosures:Income taxes paid
    
    $
    238
    
    
    $
    45,874Interest paid
    
    
    294,617
    
    
    
    212,279Non-cash activitiesCommon stock dividends accrued, paid in subsequent quarter
    
    
    48,205
    
    
    
    49,060Common stock and stock options issued for purchase acquisition
    
    
    
    
    
    
    575,756
 See
notes to unaudited condensed consolidated financial statements.
 6




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##### 



Notes to Unaudited Condensed Consolidated Financial Statements
 Note 1  Basis of Presentation
    Note 2  New Accounting Pronouncements
 Financial Accounting Standards Board (FASB) Statement No. 158, 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)
 FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes Accounting for Uncertainty in Income Taxes Accounting for Income Taxes
 FASB Statement No. 157, Fair Value Measurements (Statement No. 157)
 FASB
Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (Statement No. 159)
 7




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##### 



Note 3  Pending Acquisition of Sky Financial Group, Inc.
   Note 4  Goodwill and Other Intangible Assets
  Regional
    
    Dealer
    
    
    
    
    
    Treasury/
    
    Huntington(in thousands)
    
    Banking
    
    Sales
    
    PFCMG
    
    Other
    
    ConsolidatedBalance, January 1, 2007
    
    $
    535,855
    
    
    $
    
    
    
    $
    35,021
    
    
    $
    
    
    
    $
    570,876Adjustments
    
    
    209
    
    
    
    
    
    
    
    (1,306
    )
    
    
    
    
    
    
    (1,097
    )Balance, March 31, 2007
    
    $
    536,064
    
    
    $
    
    
    
    $
    33,715
    
    
    $
    
    
    
    $
    569,779
 Goodwill
and Other Intangible Assets, th
  Gross
    
    Accumulated
    
    Net(in thousands)
    
    Carrying Amount
    
    Amortization
    
    Carrying ValueMarch 31, 2007Leasehold purchased
    
    $
    23,655
    
    
    $
    (19,835
    )
    
    $
    3,820Core deposit intangible
    
    
    45,000
    
    
    
    (9,378
    )
    
    
    35,622Borrower relationship
    
    
    6,570
    
    
    
    (593
    )
    
    
    5,977Trust customers
    
    
    11,430
    
    
    
    (1,056
    )
    
    
    10,374Other
    
    
    1,819
    
    
    
    (447
    )
    
    
    1,372Total other intangible assets
    
    $
    88,474
    
    
    $
    (31,309
    )
    
    $
    57,165December 31, 2006Leasehold purchased
    
    $
    23,655
    
    
    $
    (19,631
    )
    
    $
    4,024Core deposit intangible
    
    
    45,000
    
    
    
    (7,525
    )
    
    
    37,475Borrower relationship
    
    
    6,570
    
    
    
    (456
    )
    
    
    6,114Trust customers
    
    
    11,430
    
    
    
    (796
    )
    
    
    10,634Other
    
    
    1,622
    
    
    
    (382
    )
    
    
    1,240Total other intangible assets
    
    $
    88,277
    
    
    $
    (28,790
    )
    
    $
    59,487March 31, 2006Leasehold purchased
    
    $
    23,655
    
    
    $
    (19,019
    )
    
    $
    4,636Core deposit intangible
    
    
    45,000
    
    
    
    (753
    )
    
    
    44,247Trust customers
    
    
    11,430
    
    
    
    (94
    )
    
    
    11,336Other
    
    
    382
    
    
    
    (38
    )
    
    
    344Total other intangible assets
    
    $
    80,467
    
    
    $
    (19,904
    )
    
    $
    60,563
 8




---



##### 



Amortization(in thousands)
    
    ExpenseFiscal year:2007
    
    $
    7,5572008
    
    
    8,8882009
    
    
    7,9572010
    
    
    7,1322011
    
    
    6,3332012
    
    
    4,966
 Note 5  Loan Sales and Securitizations
 Automobile loans
  Accounting for Servicing of Financial Assets  an amendment of FASB Statement
No. 140
  Three Months EndedMarch 31,(in thousands)
    
    2007
    
    
    2006Carrying value, beginning of period
    
    $
    7,916
    
    
    $
    10,805New servicing assets
    
    
    1,026
    
    
    
    998Amortization
    
    
    (1,756
    )
    
    
    (2,193
    )Impairment charges
    
    
    
    
    
    
    Carrying value, end of period
    
    $
    7,186
    
    
    $
    9,610Fair value, end of period
    
    $
    8,153
    
    
    $
    11,086
  Residential Mortgage Loans
  9




---



##### 



Three Months EndedMarch 31,(in thousands)
    
    2007
    
    2006Fair value, beginning of period
    
    $
    131,104
    
    
    
    109,890New servicing assets created
    
    
    8,436
    
    
    
    5,777Servicing assets acquired
    
    
    
    
    
    
    1,909Change in fair value during the period due to:Time decay (1)
    
    
    (1,076
    )
    
    
    (923
    )Payoffs (2)
    
    
    (2,562
    )
    
    
    (2,609
    )Changes in valuation inputs or assumptions (3)
    
    
    (1,057
    )
    
    
    9,213Fair value, end of period
    
    $
    134,845
    
    
    $
    123,257
 (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.
   Decline in fair valuedue to10%
    
    20%adverse
    
    adverse(in thousands)
    
    Actual
    
    change
    
    changeConstant pre-payment rate
    
    
    13.19
    %
    
    $
    (6,329
    )
    
    $
    (12,088
    )Discount rate
    
    
    9.40
    
    
    
    (4,890
    )
    
    
    (9,440
    )
   Three Months EndedMarch 31,(in thousands)
    
    2007
    
    2006Servicing fees
    
    $
    6,820
    
    
    $
    5,925Late fees
    
    
    708
    
    
    
    610Ancillary fees
    
    
    255
    
    
    
    252Total fee income
    
    $
    7,783
    
    
    $
    6,787
 10




---



##### 



Note 6  Investment Securities
  March 31, 2007
    
    December 31, 2006
    
    March 31, 2006Amortized
    
    
    
    
    
    Amortized
    
    
    
    
    
    Amortized(in thousands)
    
    Cost
    
    Fair Value
    
    Cost
    
    Fair Value
    
    Cost
    
    Fair ValueU.S. TreasuryUnder 1 year
    
    $
    130
    
    
    $
    129
    
    
    $
    800
    
    
    $
    800
    
    
    $
    
    
    
    $
    1-5 years
    
    
    648
    
    
    
    650
    
    
    
    1,046
    
    
    
    1,056
    
    
    
    21,253
    
    
    
    20,4666-10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,946
    
    
    
    3,014Over 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total U.S. Treasury
    
    
    778
    
    
    
    779
    
    
    
    1,846
    
    
    
    1,856
    
    
    
    24,199
    
    
    
    23,480Federal agenciesMortgage backed securitiesUnder 1 year
    
    
    2,249
    
    
    
    2,248
    
    
    
    1,848
    
    
    
    1,847
    
    
    
    
    
    
    
    1-5 years
    
    
    11,361
    
    
    
    11,432
    
    
    
    9,560
    
    
    
    9,608
    
    
    
    29,853
    
    
    
    28,6986-10 years
    
    
    3,455
    
    
    
    3,460
    
    
    
    4,353
    
    
    
    4,355
    
    
    
    
    
    
    
    Over 10 years
    
    
    1,222,972
    
    
    
    1,230,560
    
    
    
    1,261,423
    
    
    
    1,265,651
    
    
    
    1,244,278
    
    
    
    1,197,187Total mortgage-backed Federal agencies
    
    
    1,240,037
    
    
    
    1,247,700
    
    
    
    1,277,184
    
    
    
    1,281,461
    
    
    
    1,274,131
    
    
    
    1,225,885Other agenciesUnder 1 year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45,099
    
    
    
    44,2471-5 years
    
    
    149,324
    
    
    
    149,628
    
    
    
    149,819
    
    
    
    149,853
    
    
    
    252,770
    
    
    
    241,9586-10 years
    
    
    
    
    
    
    
    
    
    
    98
    
    
    
    96
    
    
    
    51,048
    
    
    
    47,467Over 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total other Federal agencies
    
    
    149,324
    
    
    
    149,628
    
    
    
    149,917
    
    
    
    149,949
    
    
    
    348,917
    
    
    
    333,672Total Federal agencies
    
    
    1,389,361
    
    
    
    1,397,328
    
    
    
    1,427,101
    
    
    
    1,431,410
    
    
    
    1,623,048
    
    
    
    1,559,557Municipal securitiesUnder 1 year
    
    
    42
    
    
    
    42
    
    
    
    42
    
    
    
    42
    
    
    
    65
    
    
    
    651-5 years
    
    
    9,726
    
    
    
    9,734
    
    
    
    10,553
    
    
    
    10,588
    
    
    
    145
    
    
    
    1456-10 years
    
    
    164,760
    
    
    
    164,160
    
    
    
    165,624
    
    
    
    165,229
    
    
    
    154,741
    
    
    
    151,982Over 10 years
    
    
    407,244
    
    
    
    411,275
    
    
    
    410,248
    
    
    
    415,564
    
    
    
    393,470
    
    
    
    390,206Total municipal securities
    
    
    581,772
    
    
    
    585,211
    
    
    
    586,467
    
    
    
    591,423
    
    
    
    548,421
    
    
    
    542,398Private label CMOUnder 1 year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1-5 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6-10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Over 10 years
    
    
    551,070
    
    
    
    556,342
    
    
    
    586,088
    
    
    
    590,062
    
    
    
    663,447
    
    
    
    651,017Total private label CMO
    
    
    551,070
    
    
    
    556,342
    
    
    
    586,088
    
    
    
    590,062
    
    
    
    663,447
    
    
    
    651,017Asset backed securitiesUnder 1 year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1-5 years
    
    
    30,000
    
    
    
    30,019
    
    
    
    30,000
    
    
    
    30,056
    
    
    
    30,503
    
    
    
    30,4456-10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Over 10 years
    
    
    987,045
    
    
    
    987,849
    
    
    
    1,544,572
    
    
    
    1,552,748
    
    
    
    2,071,020
    
    
    
    2,071,735Total asset backed securities
    
    
    1,017,045
    
    
    
    1,017,868
    
    
    
    1,574,572
    
    
    
    1,582,804
    
    
    
    2,101,523
    
    
    
    2,102,180OtherUnder 1 year
    
    
    6,500
    
    
    
    6,487
    
    
    
    4,800
    
    
    
    4,784
    
    
    
    2,400
    
    
    
    2,4001-5 years
    
    
    4,146
    
    
    
    4,133
    
    
    
    2,750
    
    
    
    2,706
    
    
    
    9,800
    
    
    
    9,8086-10 years
    
    
    642
    
    
    
    644
    
    
    
    
    
    
    
    
    
    
    
    1,252
    
    
    
    1,186Over 10 years
    
    
    44
    
    
    
    86
    
    
    
    44
    
    
    
    86
    
    
    
    44
    
    
    
    43Non-marketable equity securities
    
    
    150,754
    
    
    
    150,754
    
    
    
    150,754
    
    
    
    150,754
    
    
    
    136,123
    
    
    
    136,123Marketable equity securities
    
    
    4,698
    
    
    
    5,044
    
    
    
    6,481
    
    
    
    7,039
    
    
    
    5,271
    
    
    
    6,167Total other
    
    
    166,784
    
    
    
    167,148
    
    
    
    164,829
    
    
    
    165,369
    
    
    
    154,890
    
    
    
    155,727Total investment securities
    
    $
    3,706,810
    
    
    $
    3,724,676
    
    
    $
    4,340,903
    
    
    $
    4,362,924
    
    
    $
    5,115,528
    
    
    $
    5,034,359Duration in years(1)
    
    
    
    
    
    
    3.2
    
    
    
    
    
    
    
    3.2
    
    
    
    
    
    
    
    2.8
 (1)
    
    The average duration assumes a market driven pre-payment rate on securities subject to pre-payment.
 11




---



##### 



Note 7  Earnings per Share
  Three Months EndedMarch 31,(in thousands, except per share amounts)
    
    2007
    
    2006Net income
    
    $
    95,726
    
    
    $
    104,456Average common shares outstanding
    
    
    235,586
    
    
    
    230,968Dilutive potential common shares
    
    
    3,168
    
    
    
    3,395Diluted average common shares outstanding
    
    
    238,754
    
    
    
    234,363Earnings per shareBasic
    
    $
    0.41
    
    
    $
    0.45Diluted
    
    
    0.40
    
    
    
    0.45
  Note 8  Share-based Compensation
    12




---



##### 



Three Months EndedMarch 31,2007
    
    2006AssumptionsRisk-free interest rate
    
    
    4.57
    %
    
    
    4.47
    %Expected dividend yield
    
    
    4.45
    
    
    
    4.32Expected volatility of Huntingtons common stock
    
    
    21.1
    
    
    
    22.2Expected option term (years)
    
    
    6.0
    
    
    
    6.0Weighted-average grant date fair value per share
    
    $
    3.75
    
    
    $
    4.33
  Weighted-Weighted-
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateExercise
    
    
    Contractual
    
    
    Intrinsic(in thousands, except per share amounts)
    
    Options
    
    
    Price
    
    
    Life (Years)
    
    
    ValueOutstanding at January 1, 2007
    
    
    20,573
    
    
    $
    21.36Granted
    
    
    18
    
    
    
    23.71Exercised
    
    
    (316
    )
    
    
    17.38Forfeited/expired
    
    
    (179
    )
    
    
    22.33Outstanding at March 31, 2007
    
    
    20,096
    
    
    $
    21.41
    
    
    
    4.6
    
    
    $
    35,071Exercisable at March 31, 2007
    
    
    14,308
    
    
    $
    20.79
    
    
    
    4.3
    
    
    $
    32,608
     Weighted-AverageRestricted
    
    
    Grant DateStock
    
    
    Fair Value(in thousands, except per share amounts)
    
    Units
    
    
    Per ShareNonvested at January 1, 2007
    
    
    468
    
    
    $
    23.37Granted
    
    
    4
    
    
    
    23.70Vested
    
    
    (5
    )
    
    
    23.34Forfeited
    
    
    (7
    )
    
    
    23.34Nonvested at March 31, 2007
    
    
    460
    
    
    $
    23.38
 13




---



##### 



Note 9  Income Taxes
    Note 10  Benefit Plans
    Pension Benefits
    
    
    Post Retirement BenefitsThree Months Ended
    
    
    Three Months EndedMarch 31,
    
    
    March 31,(in thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Service cost
    
    $
    4,445
    
    
    $
    4,309
    
    
    $
    374
    
    
    $
    337Interest cost
    
    
    5,967
    
    
    
    5,539
    
    
    
    667
    
    
    
    565Expected return on plan assets
    
    
    (9,120
    )
    
    
    (8,220
    )
    
    
    
    
    
    
    Amortization of transition asset
    
    
    1
    
    
    
    
    
    
    
    276
    
    
    
    276Amortization of prior service cost
    
    
    1
    
    
    
    1
    
    
    
    142
    
    
    
    95Settlements
    
    
    1,000
    
    
    
    1,000
    
    
    
    
    
    
    
    Recognized net actuarial loss (gain)
    
    
    3,115
    
    
    
    4,377
    
    
    
    (81
    )
    
    
    (181
    )-Benefit expense
    
    $
    5,409
    
    
    $
    7,006
    
    
    $
    1,378
    
    
    $
    1,092
    14




---



##### 



Note 11  Commitments and Contingent Liabilities
 Commitments to extend credit :
  March 31,
    
    December 31,
    
    March 31,(in millions)
    
    2007
    
    2006
    
    2006Contract amount represents credit riskCommitments to extend creditCommercial
    
    $
    4,385
    
    
    $
    4,416
    
    
    $
    3,295Consumer
    
    
    3,482
    
    
    
    3,374
    
    
    
    3,410Commercial real estate
    
    
    1,664
    
    
    
    1,645
    
    
    
    1,648Standby letters of credit
    
    
    1,197
    
    
    
    1,156
    
    
    
    1,095Commercial letters of credit
    
    
    38
    
    
    
    54
    
    
    
    43
    Commitments to sell loans:
   Litigation:
  15




---



##### 



Note 12  Derivative Financial Instruments
 Derivatives
used in Asset and Liability Management Activities
  Fair Value
    
    Cash Flow(in thousands)
    
    Hedges
    
    Hedges
    
    TotalInstruments associated with:Deposits
    
    $
    625,000
    
    
    $
    315,000
    
    
    $
    940,000Federal 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, 2007
    
    $
    1,425,000
    
    
    $
    840,000
    
    
    $
    2,265,000
  Average
    
    
    
    
    
    Weighted-AverageNotional
    
    Maturity
    
    Fair
    
    Rate(in thousands )
    
    Value
    
    (years)
    
    Value
    
    Receive
    
    PayLiability conversion swapsReceive fixed  generic
    
    $
    810,000
    
    
    
    9.4
    
    
    $
    3,685
    
    
    
    5.29
    %
    
    
    5.57
    %Receive fixed  callable
    
    
    615,000
    
    
    
    6.3
    
    
    
    (10,912
    )
    
    
    4.64
    
    
    
    5.26Pay fixed  generic
    
    
    840,000
    
    
    
    2.2
    
    
    
    (2,057
    )
    
    
    5.33
    
    
    
    4.98Total liability conversion swaps
    
    $
    2,265,000
    
    
    
    5.9
    
    
    $
    (9,284
    )
    
    
    5.13
    %
    
    
    5.27
    %
  AverageNotional
    
    Maturity
    
    Fair
    
    Weighted-Average(in thousands )
    
    Value
    
    (years)
    
    Value
    
    Strike RateInterest
rate caps - purchased
    
    $
    500,000
    
    
    
    1.8
    
    
    $
    1,205
    
    
    
    5.50
    %
   16




---



##### 



Derivatives
Used in Mortgage Banking Activities
  March 31,
    
    December 31,
    
    March 31,(in thousands)
    
    2007
    
    2006
    
    2006Derivative assets:Interest rate lock agreements
    
    $
    383
    
    
    $
    236
    
    
    $
    250Forward trades and options
    
    
    854
    
    
    
    1176
    
    
    
    3,053Total derivative assets
    
    
    1,237
    
    
    
    1,412
    
    
    
    3,303Derivative liabilities:Interest rate lock agreements
    
    
    (808
    )
    
    
    (838
    )
    
    
    (1,650
    )Forward trades and options
    
    
    (417
    )
    
    
    (699
    )
    
    
    (32
    )Total derivative liabilities
    
    
    (1,225
    )
    
    
    (1,537
    )
    
    
    (1,682
    )Net derivative (liability) asset
    
    $
    12
    
    
    $
    (125
    )
    
    $
    1,621
 Derivatives
Used in Trading Activities
   .
  17




---



##### 



Note 13  Shareholders Equity
 Share Repurchase Program:
   Note 14  Segment Reporting
   Regional Banking:
 Dealer Sales:
 Private Financial and Capital Markets Group (PFCMG):
 18




---



##### 



Treasury / Other:
 Use of Operating Earnings to Measure Segment Performance
   Three Months Ended March 31,Income Statements
    
    Regional
    
    Dealer
    
    
    
    
    
    Treasury/
    
    Huntington(in thousands)
    
    Banking
    
    Sales
    
    PFCMG
    
    Other
    
    Consolidated2007Net interest income
    
    $
    215,060
    
    
    $
    31,641
    
    
    $
    19,177
    
    
    $
    (10,323
    )
    
    $
    255,555Provision for credit losses
    
    
    (22,456
    )
    
    
    (7,745
    )
    
    
    795
    
    
    
    
    
    
    
    (29,406
    )Non-interest income
    
    
    86,482
    
    
    
    13,181
    
    
    
    36,713
    
    
    
    8,801
    
    
    
    145,177Non-interest expense
    
    
    (162,902
    )
    
    
    (19,587
    )
    
    
    (40,232
    )
    
    
    (19,351
    )
    
    
    (242,072
    )Income taxes
    
    
    (33,171
    )
    
    
    (4,993
    )
    
    
    (4,697
    )
    
    
    9,333
    
    
    
    (33,528
    )Operating / reported net income
    
    $
    83,013
    
    
    $
    12,497
    
    
    $
    11,756
    
    
    $
    (11,540
    )
    
    $
    95,7262006Net interest income
    
    $
    208,080
    
    
    $
    34,831
    
    
    $
    17,569
    
    
    $
    (16,800
    )
    
    $
    243,680Provision for credit losses
    
    
    (10,390
    )
    
    
    (7,762
    )
    
    
    (1,388
    )
    
    
    
    
    
    
    (19,540
    )Non-interest income
    
    
    77,792
    
    
    
    26,992
    
    
    
    40,894
    
    
    
    13,856
    
    
    
    159,534Non-interest expense
    
    
    (142,148
    )
    
    
    (31,780
    )
    
    
    (30,711
    )
    
    
    (33,776
    )
    
    
    (238,415
    )Income taxes
    
    
    (46,667
    )
    
    
    (7,798
    )
    
    
    (9,227
    )
    
    
    22,889
    
    
    
    (40,803
    )Operating / reported net income
    
    $
    86,667
    
    
    $
    14,483
    
    
    $
    17,137
    
    
    $
    (13,831
    )
    
    $
    104,456
 Assets at
    
    Deposits atMarch 31,
    
    December 31,
    
    March 31,
    
    March 31,
    
    December 31,
    
    March 31,(in millions)
    
    2007
    
    2006
    
    2006
    
    2007
    
    2006
    
    2006Regional Banking
    
    $
    21,154
    
    
    $
    20,933
    
    
    $
    20,769
    
    
    $
    20,637
    
    
    $
    20,231
    
    
    $
    20,233Dealer Sales
    
    
    5,173
    
    
    
    5,003
    
    
    
    5,467
    
    
    
    55
    
    
    
    59
    
    
    
    64PFCMG
    
    
    2,236
    
    
    
    2,153
    
    
    
    2,090
    
    
    
    1,172
    
    
    
    1,162
    
    
    
    1,177Treasury / Other
    
    
    6,416
    
    
    
    7,240
    
    
    
    7,340
    
    
    
    2,722
    
    
    
    3,596
    
    
    
    3,081Total
    
    $
    34,979
    
    
    $
    35,329
    
    
    $
    35,666
    
    
    $
    24,586
    
    
    $
    25,048
    
    
    $
    24,555
 19