8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 21, 2005

HUNTINGTON BANCSHARES INCORPORATED

(Exact name of registrant as specified in its charter)

Maryland	0-2525	31-0724920
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)
	Huntington Center
	41 South High Street
	Columbus, Ohio	43287
	(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (614) 480-8300

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

     On January 21, 2005, Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the fourth quarter and year ended December 31, 2004. Also on January 21, 2005, Huntington made a Quarterly Financial Review available on its web site, www.huntington-ir.com. The information contained in the news release and the Quarterly Financial Review, which are attached as Exhibits 99.1 and 99.2, respectively, to this report, are incorporated herein by reference.

     Huntington’s senior management will host an earnings conference call January 21, 2005, at 1:00 p.m. EST. The call may be accessed via a live Internet web cast at www.huntington-ir.com or through a dial-in telephone number at 866-847-7860. Slides will be available at www.huntington-ir.com just prior to 1:00 p.m. EST on January 21, 2005, for review during the call. A replay of the web cast will be archived in the Investor Relations section of Huntington’s web site at www.huntington-ir.com. A telephone replay will be available two hours after the completion of the call through January 31, 2005, at 888-266-2081; conference call ID 616966.

     The information contained or incorporated by reference in this Current Report on Form 8-K contains forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. A number of factors, including but not limited to those set forth under the heading “Business Risks” included in Item 1 of Huntington’s Annual Report on Form 10-K for the year ended December 31, 2003, and other factors described from time to time in Huntington’s other filings with the Securities and Exchange Commission, could cause actual conditions, events, or results to differ significantly from those described in the forward-looking statements. All forward-looking statements included in this Current Report on Form 8-K are based on information available at the time of the Report. Huntington assumes no obligation to update any forward-looking statement.

     The information contained or incorporated by reference in Item 2.02 of this Form 8-K shall be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 9.01. Financial Statements and Exhibits.

     The exhibits referenced below shall be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

(c) Exhibits.

Exhibit 99.1 – News release of Huntington Bancshares Incorporated, dated January 21, 2005.

Exhibit 99.2 – Quarterly Financial Review, December 2004.

SIGNATURES

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

HUNTINGTON BANCSHARES INCORPORATED

Date: January 21, 2005	By:	/s/ Donald R. Kimble
		Donald R. Kimble
		Chief Financial Officer and Controller

EXHIBIT INDEX

Exhibit No.	Description
Exhibit 99.1	News release of Huntington Bancshares Incorporated, January 21, 2005.
Exhibit 99.2	Quarterly Financial Review, December 2004.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE
January 21, 2005

Contacts:
Analysts		Media
Jay Gould	(614) 480‑4060	Todd Bailey	(614) 480‑4588
Susan Stuart	(614) 480‑3878

HUNTINGTON BANCSHARES INCORPORATED

• REPORTS 2004 FOURTH QUARTER AND FULL YEAR RESULTS
• Fourth Quarter $0.39 Earnings Per Share Includes a Negative $0.04 From Significant Items
• Full Year $1.71 Earnings Per Share

• PROVIDES 2005 GAAP EARNINGS PER SHARE GUIDANCE OF $1.78-$1.83 PER SHARE

     COLUMBUS, Ohio — Huntington Bancshares Incorporated (NASDAQ: HBAN; www.huntington.com) reported 2004 fourth quarter earnings of $91.1 million, or $0.39 per common share, including a net negative impact of $0.04 per share related to significant items. This compares with $93.3 million, or $0.40 per common share, in the year-ago quarter and $93.5 million, or $0.40 per common share, in the 2004 third quarter.

     Full-year earnings for 2004 were $398.9 million, or $1.71 per common share, up 7% and 6%, respectively, from full-year 2003 earnings of $372.4 million, or $1.61 per common share.

     “Fourth quarter fundamentals were good, though net income was negatively impacted by a net $0.04 per share for SEC-related expenses, property lease impairment, and a one-time adjustment for a securitization structure consolidated in a prior period,” said Thomas E. Hoaglin, chairman, president, and chief executive officer. “Loan growth was again strong. Average total loans and leases increased at an annualized 15% rate from the third quarter with both consumer loans and middle market commercial and industrial loans growing at a 19% annualized rate. We were particularly encouraged to see middle market commercial and industrial loan growth in each of the last five months.”

     “Average core deposits increased at a 10% annualized rate, with both interest bearing demand deposits, as well as non-interest bearing deposits growing at 15% annualized rates,” he noted. “These increases were supported by continued growth in the number of consumer

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demand deposit households and small business demand deposit relationships, as our sales efforts continue to gain traction.”

     “We were very pleased with the improvement in the net interest margin,” he continued. “Expenses continued to be influenced by SEC-related and Unizan conversion expenses, as well as costs associated with Sarbanes-Oxley 404 compliance.”

     “Overall credit quality performance remained strong,” he said. “Though a unique loan workout situation resulted in all of the quarter’s OREO and NPA increase, the properties in question are already under contract to be sold early in 2005. Net charge-offs as an annualized percent of average total loans and leases were 36 basis points, up from 30 basis points in the third quarter but well within expectations.”

     He concluded, “2004 was a year of significant progress on a number of fronts: loan and deposit growth, consumer and small business account growth, and strong credit quality performance. Associates remained very focused on growing our core businesses, improving service quality, and attracting new customers. This momentum positions us well for 2005.”

     Significant 2004 fourth quarter performance highlights included:

•   $6.5 million pre-tax ($0.03 earnings per share) SEC-related expenses and accruals.

•   $7.8 million pre-tax ($0.02 earnings per share) one-time property lease impairment resulting from an annual fourth quarter property valuation review, which impacted net occupancy expense.

•   $3.7 million pre-tax ($0.01 earnings per share) one-time funding cost adjustment for a securitization structure consolidated in a prior period, which lowered interest expense and increased net interest income, as well as the net interest margin.

     Highlights compared with 2004 third quarter included:

•   4% (15% annualized) growth in average total loans and leases reflecting 5% (19% annualized) growth in consumer loans and 5% (19% annualized) growth in middle market commercial and industrial loans.

•   3% (11% annualized) growth in average small business loans.

•   2% (10% annualized) growth in average total core deposits.

•   3.38% net interest margin, including a 6 basis point positive impact from the $3.7 million funding cost adjustment for a securitization structure consolidated in a prior period, up from 3.30%.

•   0.36% annualized net charge-offs, up from 0.30%.

•   0.46% period-end non-performing asset (NPA) ratio, including a 15 basis point impact from other real estate owned (OREO) properties associated with a workout of a mezzanine loan relationship, compared with 0.36% at September 30, 2004.

•   1.15% period-end allowance for loan and lease losses (ALLL) ratio, down from 1.25% at September 30, 2004.

•   7.87% period-end tangible common equity to risk-weighted assets ratio, up from 7.83% at September 30, 2004.

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Discussion of Performance

     Fully taxable equivalent net interest income increased $14.6 million, or 6%, from the year-ago quarter, reflecting the favorable impact of an 8% increase in average earning assets, partially offset by a 4 basis point, or an effective 1%, decline in the net interest margin. The fully taxable equivalent net interest margin decreased to 3.38% from 3.42% in the year-ago quarter. The current quarter net interest margin, however, reflected the one-time 6 basis point favorable impact from the funding cost adjustment noted above. Excluding this 6 basis point impact, the fourth quarter net interest margin was 3.32%. The decline from the year-ago quarter reflected the impact of lower rates and the strategic repositioning of portfolios to reduce automobile loans and increase the relative proportion of lower-rate, lower-risk, residential real estate-related loans.

     Compared with the 2004 third quarter, fully taxable equivalent net interest income increased $12.0 million, or 5%, reflecting the favorable impact of a 3% increase in average earning assets and an 8 basis point increase in the net interest margin to 3.38% from 3.30% in the 2004 third quarter. The 2004 fourth quarter net interest margin reflected the favorable one-time 6 basis point impact from the funding cost adjustment noted above.

     Average total loans and leases increased $1.6 billion, or 8%, from the 2003 fourth quarter due primarily to a $1.1 billion, or 9%, increase in average consumer loans. Contributing to the consumer loan growth was a $1.2 billion, or 48%, increase in average residential mortgages and a $0.9 billion, or 24%, increase in average home equity loans. Demand for residential mortgages and home equity loans remained strong as interest rates remained near historically low levels.

     Average total automobile loans declined $1.6 billion, or 46%, from the year-ago quarter reflecting the sale of $1.5 billion of automobile loans over this 12-month period as part of a strategy of reducing automobile loan and lease exposure to a targeted 20% of total credit exposure. Partially offsetting the decline in automobile loans was rapid growth in direct financing leases due to the migration from operating lease assets, which have not been originated since April 2002. At December 31, 2004, the total exposure to automobile financing was $5.0 billion, down from $6.2 billion at the end of 2003, and represented 21% of total credit exposure, down from 28% a year earlier, and 33% at the end of 2002.

($ billions)	12/31/04			12/31/03			12/31/02
Total Company
Loans and leases	$	23.6		$	21.1		$	18.6
Operating lease assets		0.6			1.3			2.2
Securitized loans		—			0.0			1.1
Total credit exposure	$	24.1		$	22.4		$	21.9
Automobile Financing
Loans and leases	$	4.4		$	4.9		$	3.9
Operating lease assets		0.6			1.3			2.2
Securitized loans		—			0.0			1.1
Total auto exposure	$	5.0		$	6.2		$	7.2
% Total credit exposure		21	%		28	%		33	%

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     Average total commercial loans were $10.1 billion, up $0.6 billion, or 6%, from the year-ago quarter. This increase reflected a $0.3 billion, or 10%, increase in middle market real estate loans and $0.2 billion, or 12%, increase in small business loans. Middle market commercial and industrial loans were essentially unchanged from the year-ago period.

     Compared with the third quarter, average total loans and leases in the 2004 fourth quarter increased $0.8 billion, or 4%. Average total consumer loans accounted for most of this increase as they increased $0.6 billion, or 5%, reflecting a $0.2 billion, or 6%, increase in residential mortgages and a $0.2 billion, or 4%, increase in average home equity loans. In addition, average automobile loans and leases increased $0.2 billion, or 5%, due to growth in direct financing leases and, to a lesser degree, growth in automobile loans. Automobile loan production declined 15% from the third quarter reflecting continued aggressive competitiveness in this sector. Average total commercial loans increased $0.3 billion, or 3%. This was led by a $0.2 billion, or 5%, increase in middle market commercial and industrial loans. Average small business loans increased 3% with middle market real estate loans essentially unchanged.

     Average investment securities declined $0.3 billion, or 6%, from the year-ago quarter and declined $0.5 billion, or 10%, from the 2004 third quarter.

     Average total core deposits in the fourth quarter were $16.9 billion, up $1.4 billion, or 9%, from the year-ago quarter, reflecting a $1.2 billion, or 18%, increase in average interest bearing demand deposit accounts, and a $0.3 billion, or 9%, increase in non-interest bearing deposits. Compared with the 2004 third quarter, average total core deposits increased $0.4 billion, or 2%, reflecting growth in interest bearing demand deposits, up $0.3 billion, or 4%, as well as non-interest bearing deposits, up $0.1 billion, or 4%.

     Non-interest income decreased $63.6 million, or 26%, from the year-ago quarter. Comparisons with prior-period results were heavily influenced by the decline in operating leases and related operating lease income. These declines are expected to continue, though diminishing over time, as all automobile leases originated since April 2002 are direct financing leases with income reflected in net interest income, not non-interest income. Reflecting the run-off of the operating lease portfolio, operating lease income declined $50.2 million, or 48%, from the 2003 fourth quarter.

     Excluding operating lease income, non-interest income decreased $13.4 million, or 9%, from the year-ago quarter with the primary drivers being:

•   $16.3 million gain on sale of automobile loans in the year-ago quarter with no such gain in the current quarter.

•   $3.0 million, or 7%, decline in service charges on deposit accounts primarily reflecting lower consumer NSF and overdraft service charge income and, to a lesser degree, lower service charges on commercial accounts related to higher commercial deposit credits that occur as interest rates increase, as well as a decrease in check processing activity.

•   $1.5 million, or 10%, decline in brokerage and insurance income due to lower annuity income.

Partially offset by:

•   $4.5 million increase in other income reflecting investment banking and other equity investment gains.

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•   $1.5 million, or 10%, increase in trust services income.

•   $1.4 million, or 15%, increase in other service charges and fees due to increased check card volume and higher interchange rates.

     Compared with the 2004 third quarter, non-interest income declined $7.0 million, or 4%. This comparison was also heavily influenced by the decline in operating lease income for the reasons noted above. Reflecting the run-off of the operating lease portfolio, operating lease income declined $9.3 million, or 14%, from the 2004 third quarter. Excluding operating lease income, non-interest income increased $2.4 million, or 2%, from the 2004 third quarter with the primary drivers being:

•   $6.0 million increase in other income reflecting the benefit of investment banking and other equity investment gains, partially offset by higher MSR hedge-related trading losses.

•   $4.4 million increase in mortgage banking income primarily reflecting a $0.7 million MSR temporary impairment recovery in the current quarter compared with a $4.1 million MSR temporary impairment in the third quarter. The carrying value of MSRs as a percent of mortgages serviced for others was 1.12% at December 31, 2004, little changed from 1.13% at September 30, 2004.

Partially offset by:

•   $5.7 million decline in investment securities gains with the current quarter reflecting $2.1 million of such gains, compared with $7.8 million of such gains in the 2004 third quarter.

•   $2.2 million, or 5%, decline in service charges on deposit accounts primarily reflecting lower consumer NSF and overdraft service charge income, and to a lesser degree, lower service charges on commercial accounts.

     Non-interest expense decreased $36.5 million, or 11%, from the year-ago quarter. Comparisons with prior-period results were influenced by the decline in operating lease expense as the operating lease portfolio continues to run-off (see above operating lease income discussion). Operating lease expense declined $37.3 million, or 44%, from the 2003 fourth quarter. Excluding operating lease expense, non-interest expense increased $0.8 million, or less than 1%, from the year-ago quarter reflecting:

•   $11.2 million increase in net occupancy expense reflecting a $7.8 million property lease impairment, as well as a write-down on vacated facilities as a renovated facility was re-occupied.

•   $7.0 million increase in personnel costs due to higher pension-related expenses.

Partially offset by:

•   $15.3 million loss on early extinguishment of debt in the year-ago quarter with no such loss in the current quarter.

•   $1.3 million decline in marketing expense.

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•   $1.1 million decline in equipment expense.

     Compared with the 2004 third quarter, non-interest expense increased $7.6 million, or 3%. Comparisons with prior-period results were also heavily influenced by the decline in operating lease expense. Operating lease expense declined $6.6 million, or 12%, from the 2004 third quarter. Excluding operating lease expense, non-interest expense increased $14.2 million, or 6%, from the third quarter reflecting:

•   $9.2 million increase in net occupancy as the current quarter included $7.8 million in property lease impairment and write-down on vacated facilities as noted above.

•   $1.2 million of restructuring reserve releases in the third quarter compared with no reserve charges or releases in the current quarter.

•   $1.0 million increase in personnel costs reflecting higher pension expenses.

Partially offset by:

•   $2.7 million decline in professional services.

     In addition to the above-mentioned items, SEC-related expenses and accruals, as well as Unizan related expenses related to integration planning and systems conversions, contributed to the change in expense from the year-ago and third quarter periods. Specifically, SEC-related expenses and accruals totaled $6.5 million in the 2004 fourth quarter, up from $5.5 million in the third quarter. These expenses and accruals impacted the professional services and other expense categories. Unizan integration planning and systems conversion expenses totaled $0.9 million and $1.8 million in the 2004 fourth and third quarters, respectively. In addition to impacting the data processing and other services expense category, a portion of these expenses was also spread across various other expense categories.

Credit Quality

     Total net charge-offs for the 2004 fourth quarter were $20.9 million, or an annualized 0.36% of average total loans and leases. This was a decrease from $55.1 million, or 1.03%, in the year-ago quarter but an increase from $16.5 million, or an annualized 0.30% of average total loans and leases in the third quarter.

     Total commercial net charge-offs in the fourth quarter were $5.2 million, or an annualized 0.21%, down from $36.9 million, or an annualized 1.55%, in the year-ago quarter. In the 2003 fourth quarter the credit workout group identified an economically attractive opportunity to sell $99 million of lower quality loans, including $43 million of non-performing assets (NPAs), which resulted in $26.6 million in commercial and middle market commercial real estate loan net charge-offs, or an annualized 0.50% of average total loans and leases. Excluding this $26.6 million in net charge-offs, 2003 fourth quarter net charge-offs were $28.6 million, or 0.53%, of average loans and leases. Total commercial net charge-offs in the 2004 third quarter were only $2.6 million, or an annualized 0.10%.

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     Total consumer net charge-offs in the current quarter were $15.8 million, or an annualized 0.49% of related loans. This compared with $18.2 million, or 0.61%, in the year-ago quarter with this decline heavily influenced by lower automobile loan and lease net charge-offs. Total automobile loan and lease net charge-offs in the 2004 fourth quarter were $7.5 million, or an annualized 0.70% of related loans and leases, down significantly from $13.3 million, or an annualized 1.00%, in the year-ago quarter.

     Compared with the 2004 third quarter, fourth quarter total consumer net charge-offs increased $1.8 million, reflecting a $1.1 million increase in home equity loan net charge-offs which were $5.3 million, or 0.48%, of related loans. The increase in the current quarter reflected a $1.0 million reclassification from other consumer net charge-offs applicable to prior periods and a continuation of our conservative collateral valuations and charge-off policies. Net charge-offs on automobile loans and leases were essentially unchanged from third quarter performance.

     Credit losses on operating lease assets are included in operating lease expense and were $3.0 million in the current quarter, down from $8.8 million in the year-ago quarter and $5.0 million in the third quarter. Recoveries on operating lease assets are included in operating lease income and totaled $2.0 million, $1.9 million, and $1.2 million, for the same periods, respectively. The ratio of operating lease asset credit losses to average operating lease assets, net of recoveries, was an annualized 0.65% in the current quarter, 2.05% in the year-ago quarter, and 1.89% in the 2004 third quarter. As noted in the non-interest income discussion above, the operating lease portfolio will decline over time as no new operating lease assets have been generated since April 2002.

     NPAs were $108.6 million at December 31, 2004, and represented 0.46% of related assets, up $21.2 million from $87.4 million, or 0.41%, at the end of the year-ago quarter and up $28.1 million from $80.5 million, or 0.36%, at September 30, 2004. All of the increase from both the year-ago and prior quarters related to the workout of a troubled mezzanine financing relationship. During the fourth quarter, OREO reflected a $35.7 million increase for properties related to the workout of $5.9 million of non-performing mezzanine loans as Huntington took ownership of the partnership, which required consolidation of the partnership’s assets and liabilities including these properties. These properties are subject to $29.8 million of non-recourse debt to another financial institution, and are in contract for sale early in 2005.

     Non-performing loans and leases (NPLs), which exclude OREO, were $64.0 million at December 31, 2004, down 15% from $75.5 million a year earlier and down 6% from the end of the third quarter including the impact of the sale of an $8.8 million pool of NPLs in the fourth quarter. Expressed as a percent of total loans and leases, NPLs were 0.27% at December 31, 2004, down from 0.36% at December 31, 2003, and 0.30% at September 30, 2004.

     The over 90-day delinquent, but still accruing, ratio was 0.23% at December 31, 2004, little changed from 0.27% a year ago, and 0.24% at September 30, 2004.

Allowances for Credit Losses (ACL)

     The company maintains two reserves, both of which are available to absorb possible credit losses: the allowance for loan and lease losses (ALLL) and the allowance for unfunded loan commitments (AULC). When summed together, these reserves constitute the total allowances for credit losses (ACL).

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     The December 31, 2004, ALLL was $271.2 million, down from $299.7 million a year earlier and $282.7 million at September 30, 2004. Expressed as a percent of period-end loans and leases, the ALLL ratio at December 31, 2004, was 1.15%, down from 1.42% a year ago and 1.25% at September 30, 2004. These declines reflected the improvement in the economic outlook, the change in the mix of the loan portfolio to lower-risk residential mortgages and home equity loans, and the reduction of specific reserves related to improved or resolved individual problem commercial credits. The 27 basis point decline in the ALLL ratio from a year ago consisted of a 10 basis point decline in the transaction reserve component, a 9 basis point decline in the specific reserve component, and an 8 basis point decline in the economic reserve component. The 10 basis point decline in the ALLL ratio from September 30, 2004, consisted of a 6 basis point decline in the transaction reserve component, a 3 basis point decline in the specific reserve component, and a 1 basis point decline in the economic reserve. The ALLL as a percent of NPAs was 250% at December 31, 2004, which was reduced by the 122% impact from the mezzanine-related OREO. This compared with 343% a year ago, and 351% at September 30, 2004.

     The December 31, 2004, AULC was $33.2 million, down from $35.5 million at the end of the year-ago quarter, but up from $30.0 million at September 30, 2004.

     On a combined basis, the ACL as a percent of total loans and leases was 1.29% at December 31, 2004, compared with 1.59% a year earlier and 1.38% at the end of last quarter. Similarly, the ACL as a percent of NPAs was 280% at December 31, 2004, compared with 384% a year earlier and 389% at September 30, 2004.

     The provision for loan and lease losses in the 2004 fourth quarter was $12.7 million, a $13.7 million reduction from the year-ago quarter, but a $0.9 million increase from the 2004 third quarter. The reduction in provision expense from the year-ago quarter reflected overall improved portfolio quality performance and a stronger economic outlook, only partially offset by provision expense related to loan growth. The increase in provision expense from the third quarter primarily reflected loan growth, partially offset by the benefit of higher recoveries.

Capital

     At December 31, 2004, the tangible equity to assets ratio was 7.18%, up from 6.79% a year ago, and 7.11% at September 30, 2004. At December 31, 2004, the tangible equity to risk-weighted assets ratio was 7.87%, up from 7.31% at the end of the year-ago quarter, and 7.83% at September 30, 2004. The increase in the tangible equity to risk-weighted assets ratio reflected primarily the positive impact resulting from reducing the overall risk profile of earning assets throughout this period, most notably a less risky loan portfolio mix.

2005 Outlook

     When earnings guidance is given, it is the company’s practice to do so on a GAAP basis. Furthermore, such guidance excludes any impact from potential future loan sales or other one-time items not certain at the time such earnings guidance is provided.

     “The trend and absolute level of interest rates, as well as the overall economic environment are key in setting performance expectations,” said Hoaglin. “At this time, the outlook for these

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factors are favorable and almost identical to our expectations a year-ago. Specifically, we anticipate modest economic growth in our regions and a gradual rise in the level of interest rates. We expect continued solid demand for home equity loans, small business loans, and middle market commercial real estate loans. Growth in residential mortgages is expected to be good, though less than last year. Importantly, we expect improved demand for middle market commercial C&I loans. Another good year in growing deposits is expected as we continue to improve our sales performance results and build on our success in growing our retail and commercial account bases. ”

     “We believe our net interest margin throughout the year will remain relatively consistent with the 2004 full-year level of 3.33%. Non-interest income, excluding the impact of declining operating lease income, should increase in the mid-single digit range. Improving expense efficiency will be more of a focus, and excluding the impact of declining operating lease expense, we expect to hold expenses flat with the 2004 level.”

     “The total net charge-off, NPL, and allowance for loan and lease loss ratios are expected to hold fairly steady around fourth quarter performance levels. However, loan loss provision expense will increase in order to accommodate loan growth.”

     “Reflecting these factors, we are targeting reported, or GAAP, earnings of $1.78-$1.83 per share in 2005. This excludes any impact from SEC-related expenses, the implementation of FAS 123 for stock option expense accounting, or share buybacks. To the degree such impacts are known, they will be included in future earnings guidance,” he concluded.

SEC Investigation and Banking Regulatory Agreements

     As previously announced, Huntington continues to have ongoing discussions with the staff of the Securities and Exchange Commission (SEC) regarding resolution of its previously announced formal investigation into certain financial accounting matters relating to fiscal years 2002 and earlier and certain related disclosure matters. It is anticipated that a settlement of this matter, which is subject to approval by the SEC, will involve the entry of an order by the SEC requiring Huntington to comply with various provisions of the Securities Exchange Act of 1934 and the Securities Act of 1933, along with the imposition of a civil money penalty. At year end, the company had reserves related to the expectation of the imposition of a civil money penalty, which the company viewed as sufficient given negotiations with the SEC. However, no assurances can be made that any assessed penalty may not exceed this amount.

     Also as previously announced, Huntington expects to enter into formal supervisory agreements with its banking regulators, the Federal Reserve and Office of the Comptroller of the Currency, providing for a comprehensive action plan designed to address its financial reporting and accounting policies, procedures and controls, and its corporate governance practices. Huntington remains in active dialogue with banking regulators concerning these and related matters and is working diligently to resolve them in a full and comprehensive manner.

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Conference Call / Webcast Information

     Huntington’s senior management will host an earnings conference call today at 1:00 p.m. (Eastern Time). The call may be accessed via a live Internet webcast at huntington-ir.com or through a dial-in telephone number at 866-847-7860. Slides will be available at huntington-ir.com just prior to 1:00 p.m. (Eastern Time) today for review during the call. A replay of the webcast will be archived in the Investor Relations section of Huntington’s web site huntington-ir.com. A telephone replay will be available two hours after the completion of the call through the end of this month at 888-266-2081; conference ID 616966.

Forward-looking Statement

     This press release contains certain forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. A number of factors, including but not limited to those set forth under the heading “Business Risks” included in Item 1 of Huntington’s Annual Report on Form 10-K for the year ended December 31, 2003, and other factors described from time to time in Huntington’s other filings with the Securities and Exchange Commission, could cause actual conditions, events, or results to differ significantly from those described in the forward-looking statements. All forward-looking statements included in this news release are based on information available at the time of the release. Huntington assumes no obligation to update any forward-looking statement.

Basis of Presentation

Use of Non-GAAP Financial Measures

     This earnings release contains GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Huntington’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Quarterly Financial Review supplement to this earnings release, which can be found on Huntington’s website at huntington-ir.com.

Annualized data

     Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. For example, loan growth rates are most often expressed in terms of an annual rate like 8%. As such, a 2% growth rate for a quarter would represent an annualized 8% growth rate.

Fully taxable equivalent interest income and net interest margin

     Income from tax-exempt earnings assets is increased by an amount equivalent to the taxes that would have been paid if this income had been taxable at statutory rates. This adjustment puts all earning assets, most notably tax-exempt municipal securities and certain lease assets, on a common basis that facilitates comparison of results to results of competitors.

Earnings per share equivalent data

     Significant one-time income or expense items may be expressed on a per common share basis. This is done for analytical and decision-making purposes to better discern underlying trends in total corporate earnings per share performance excluding the impact of such items. Investors may also find this information helpful in their evaluation of the company’s financial performance against published earnings per share mean estimate amounts, which typically exclude the impact of significant one-time items. Earnings per share equivalents are usually calculated by applying a 35% effective tax rate to a pre-tax amount to derive an after-tax amount, which is divided by the average shares outstanding during the respective reporting period. Occasionally, when the item involves special tax treatment, the after-tax amount is separately disclosed, with this then being the amount used to calculate the earnings per share equivalent.

NM or nm

     Percent changes of 100% or more are shown as “nm” or “not meaningful”. Such large percent changes typically reflect the impact of one-time items within the measured periods. Since the primary purpose of showing a percent change is for discerning underlying performance trends, such large percent changes are “not meaningful” for this purpose.

- 10 -

About Huntington

     Huntington Bancshares Incorporated is a $33 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has more than 139 years of serving the financial needs of its customers. Huntington provides innovative retail and commercial financial products and services through more than 300 regional banking offices in Indiana, Kentucky, Michigan, Ohio and West Virginia. Huntington also offers retail and commercial financial services online at huntington.com; through its technologically advanced, 24-hour telephone bank; and through its network of approximately 700 ATMs. Selected financial service activities are also conducted in other states including: Dealer Sales offices in Florida, Georgia, Tennessee, Pennsylvania, and Arizona; Private Financial Group offices in Florida; and Mortgage Banking offices in Florida, Maryland, and New Jersey. International banking services are made available through the headquarters office in Columbus and an office located in the Cayman Islands and an office located in Hong Kong.

###

- 11 -

HUNTINGTON BANCSHARES INCORPORATED
Quarterly Key Statistics
(Unaudited)

										Percent Change
(in thousands, except per share amounts)	4Q04			3Q04			4Q03			3Q04			4Q03
Net Interest Income	$	239,068		$	227,058		$	224,315			5.3	%		6.6	%
Provision for Credit Losses		12,654			11,785			26,341			7.4			(52.0	)
Non-Interest Income		182,940			189,891			246,510			(3.7	)		(25.8	)
Non-Interest Expense		281,014			273,423			317,465			2.8			(11.5	)
Income Before Income Taxes		128,340			131,741			127,019			(2.6	)		1.0
Provision for Income Taxes		37,201			38,255			33,758			(2.8	)		10.2
Net Income	$	91,139		$	93,486		$	93,261			(2.5	)%		(2.3	)%
Net Income per common share — diluted	$	0.39		$	0.40		$	0.40			(2.5	)		(2.5	)
Cash dividends declared per common share		0.200			0.200			0.175			—			14.3
Book value per common share at end of period		10.96			10.69			9.93			2.5			10.3
Average common shares — basic		231,147			229,848			228,902			0.6			1.0
Average common shares — diluted		235,462			234,348			231,986			0.5			1.5
Return on average assets		1.13	%		1.18	%		1.22	%
Return on average shareholders’ equity		14.6			15.4			16.6
Net interest margin (1)		3.38			3.30			3.42
Efficiency ratio (2)		66.4			66.3			67.1
Effective tax rate		29.0			29.0			26.6
Average loans and leases	$	23,032,173		$	22,194,826		$	21,406,486			3.8	%		7.6	%
Average loans and leases — linked quarter annualized growth rate.		15.1	%		7.9	%		17.5	%
Average earning assets		28,506,464			27,736,806			26,426,249			2.8			7.9
Average core deposits (3)		16,908,269			16,509,879			15,543,934			2.4			8.8
Average core deposits — linked quarter annualized growth rate (3)		9.7	%		6.9	%		(6.5	)%
Average core deposits — excluding Retail CDs	$	14,454,571		$	14,095,580		$	13,052,055			2.5			10.7
Average core deposits excl. Retail CDs — linked quarter annualized growth rate		10.2	%		7.7	%		(5.7	)%
Average total assets	$	32,060,518		$	31,458,712		$	30,422,986			1.9			5.4
Average shareholders’ equity		2,481,373			2,411,746			2,228,129			2.9			11.4
Total assets at end of period	$	32,565,497		$	31,808,240		$	30,519,326			2.4			6.7
Total shareholders’ equity at end of period		2,537,638			2,460,917			2,275,002			3.1			11.5
Net charge-offs (NCOs)	$	20,913		$	16,480		$	55,143			26.9			(62.1	)
NCOs as a % of average loans and leases		0.36	%		0.30	%		1.03	%
Non-performing loans and leases (NPLs)	$	63,962		$	67,784		$	75,481			(5.6	)		(15.3	)
Non-performing assets (NPAs)		108,568			80,476			87,386			34.9			24.2
NPAs as a % of total loans and leases and other real estate (OREO)		0.46	%		0.36	%		0.41	%
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		1.15			1.25			1.42
ALLL plus allowance for unfunded loan commitments and letters of credit as a % of total loans and leases at the end of period		1.29			1.38			1.59
ALLL as a % of NPLs		424			417			397
ALLL as a % of NPAs		250			351			343
Tier 1 risk-based capital (4)		9.09			9.10			8.53
Total risk-based capital (4)		12.38			12.53			11.95
Tier 1 leverage (4)		8.41			8.36			7.98
Average equity / assets		7.74			7.67			7.32
Tangible equity / assets (5)		7.18			7.11			6.79

N.M. - Not Meaningful.
(1)	On a fully taxable equivalent (FTE) basis assuming a 35% tax rate.
(2)	Non-interest expense less amortization of intangibles ($0.2 million for all periods above) divided by the sum of FTE net interest income and non-interest income excluding securities gains (losses).
(3)	Includes non-interest bearing and interest bearing demand deposits, savings deposits, retail CDs and other domestic time deposits.
(4)	Estimated at the end of December, 2004.
(5)	At end of period. Tangible equity (total equity less intangible assets) divided by tangible assets (total assets less intangible assets).

-12-

HUNTINGTON BANCSHARES INCORPORATED
Annual Key Statistics
(Unaudited)

							Change
(in thousands, except per share amounts)	2004			2003			Amount			Percent
Net Interest Income	$	911,374		$	848,986		$	62,388			7.3	%
Provision for Credit Losses		55,062			163,993			(108,931	)		(66.4	)
Non-Interest Income		818,598			1,069,153			(250,555	)		(23.4	)
Non-Interest Expense		1,122,244			1,230,159			(107,915	)		(8.8	)
Income Before Income Taxes		552,666			523,987			28,679			5.5
Provision for Income Taxes		153,741			138,294			15,447			11.2
Income before cumulative effect of change in accounting principle		398,925			385,693			13,232			3.4
Cumulative effect of change in accounting principle, net of tax		—			(13,330	)		13,330			N.M.
Net Income	$	398,925		$	372,363		$	26,562			7.1	%
Income per common share before cumulative effect of change in accounting principle — diluted	$	1.71		$	1.67			0.04			2.4	%
Net Income per common share — diluted		1.71			1.61			0.10			6.2
Cash dividends declared per common share		0.750			0.670			0.08			11.9
Average common shares — basic		229,913			229,401			512			0.2
Average common shares — diluted		233,846			231,582			2,264			1.0
Return on average assets		1.27	%		1.33	%
Return on average shareholders’ equity		16.8			17.6
Net interest margin (1)		3.33			3.49
Efficiency ratio (2)		65.0			63.9
Effective tax rate		27.8			26.4
Average loans and leases	$	22,126,894		$	20,023,718		$	2,103,176			10.5	%
Average earning assets		27,697,075			24,592,685			3,104,390			12.6
Average total assets		31,432,746			28,971,701			2,461,045			8.5
Average core deposits (3)		16,284,727			15,437,060			847,667			5.5
Average core deposits — excluding Retail CDs		13,867,661			12,735,282			1,132,379			8.9
Average shareholders’ equity		2,374,137			2,196,349			177,788			8.1
Net charge-offs (NCOs)		78,535			161,809			(83,274	)		(51.5	)
NCOs as a % of average loans and leases		0.35	%		0.81	%

N.M. - Not Meaningful.
(1)	On a fully taxable equivalent (FTE) basis assuming a 35% tax rate.
(2)	Non-interest expense less amortization of intangibles ($0.8 million for both periods above) divided by the sum of FTE net interest income and non-interest income excluding securities gains (losses) .
(3)	Includes non-interest bearing and interest bearing demand deposits, savings deposits, retail CDs and other domestic time deposits.

-13-

EX-99.2

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED

Quarterly Financial Review

December 2004

Table of Contents

Consolidated Balance Sheets	1
Loan and Lease Composition	2
Deposit Composition	3
Consolidated Quarterly Average Balance Sheets	4
Consolidated Quarterly Net Interest Margin Analysis	5
Selected Quarterly Income Statement Data	6
Quarterly Credit Reserves and Net Charge-Off Analysis	7
Quarterly Non-Performing Assets and Past Due Loans and Leases	8
Quarterly Stock Summary, Capital, and Other Data	9
Quarterly Operating Lease Performance	10
Consolidated Annual Average Balance Sheets	11
Consolidated Annual Net Interest Margin Analysis	12
Selected Annual Income Statement Data	13
Annual Credit Reserves and Net Charge-Off Analysis	14
Annual Operating Lease Performance	15

Note:

The preparation of financial statements in conformity with accounting principals generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current year’s presentation.

Huntington Bancshares Incorporated

Consolidated Balance Sheets

										Change
	December 31,			September 30,			December 31,			December’ 04 vs ’03
(in thousands, except number of shares)	2004			2004			2003			Amount			Percent
	(Unaudited)			(Unaudited)
Assets
Cash and due from banks	$	877,320		$	1,053,358		$	899,689		$	(22,369	)		(2.5	)%
Federal funds sold and securities purchased under resale agreements		628,040			838,833			96,814			531,226			N.M.
Interest bearing deposits in banks		22,398			36,155			33,627			(11,229	)		(33.4	)
Trading account securities		309,630			120,334			7,589			302,041			N.M.
Loans held for sale		223,469			205,913			226,729			(3,260	)		(1.4	)
Securities		4,238,945			4,150,044			4,929,060			(690,115	)		(14.0	)
Loans and leases (1)		23,560,277			22,587,259			21,075,118			2,485,159			11.8
Allowance for loan and lease losses		(271,211	)		(282,650	)		(299,732	)		28,521			(9.5	)
Net loans and leases		23,289,066			22,304,609			20,775,386			2,513,680			12.1
Operating lease assets		587,310			717,411			1,260,440			(673,130	)		(53.4	)
Bank owned life insurance		963,059			954,911			927,671			35,388			3.8
Premises and equipment		355,115			356,438			349,712			5,403			1.5
Goodwill and other intangible assets		215,807			216,011			217,009			(1,202	)		(0.6	)
Customers’ acceptance liability		11,299			8,787			9,553			1,746			18.3
Accrued income and other assets		844,039			845,436			786,047			57,992			7.4
Total Assets	$	32,565,497		$	31,808,240		$	30,519,326		$	2,046,171			6.7	%
Liabilities and Shareholders’ Equity
Deposits (2)	$	20,768,161		$	20,109,025		$	18,487,395		$	2,280,766			12.3	%
Short-term borrowings		1,207,233			1,215,887			1,452,304			(245,071	)		(16.9	)
Federal Home Loan Bank advances		1,271,088			1,270,454			1,273,000			(1,912	)		(0.2	)
Other long-term debt		4,016,004			4,094,185			4,544,509			(528,505	)		(11.6	)
Subordinated notes		1,039,793			1,040,901			990,470			49,323			5.0
Allowance for unfunded loan commitments and letters of credit		33,187			30,007			35,522			(2,335	)		(6.6	)
Bank acceptances outstanding		11,299			8,787			9,553			1,746			18.3
Deferred federal income tax liability		783,628			723,525			654,534			129,094			19.7
Accrued expenses and other liabilities		897,466			854,552			797,037			100,429			12.6
Total Liabilities		30,027,859			29,347,323			28,244,324			1,783,535			6.3
Shareholders’ equity
Preferred stock - authorized 6,617,808 shares; none outstanding		—			—			—			—			—
Common stock - - without par value; authorized 500,000,000 shares; issued 257,866,255 shares; outstanding 231,605,281; 230,153,486 and 229,008,088 shares, respectively.		2,484,204			2,482,904			2,483,542			662			0.0
Less 26,260,974; 27,712,769 and 28,858,167 treasury shares, respectively		(499,259	)		(526,967	)		(548,576	)		49,317			(9.0	)
Accumulated other comprehensive income (loss)		(10,903	)		(13,812	)		2,678			(13,581	)		N.M.
Retained earnings		563,596			518,792			337,358			226,238			67.1
Total Shareholders’ Equity		2,537,638			2,460,917			2,275,002			262,636			11.5
Total Liabilities and Shareholders’ Equity	$	32,565,497		$	31,808,240		$	30,519,326		$	2,046,171			6.7	%

N.M. - Not Meaningful.

⁽¹⁾ See Page 2 for detail of Loans and Leases.

⁽²⁾ See Page 3 for detail of Deposits.

1

Huntington Bancshares Incorporated

Loans & Leases Portfolio Composition (Direct Financing and Operating)

													Change
	December 31, 2004				September 30, 2004				December 31, 2003				December ’04 vs ’03
(in thousands)	Balance		%		Balance		%		Balance		%		Amount			Percent
	(Unaudited)				(Unaudited)
By Type
Commercial
Middle market commercial and industrial (1)	$	4,666,125		19.3	$	4,358,377		18.7	$	4,415,872		19.7	$	250,253			5.7	%
Middle market real estate: (1)
Construction		1,601,565		6.6		1,547,336		6.6		1,263,910		5.6		337,655			26.7
Commercial		1,916,665		7.9		1,933,453		8.3		1,919,158		8.6		(2,493	)		(0.1	)
Total middle market real estate		3,518,230		14.6		3,480,789		14.9		3,183,068		14.2		335,162			10.5
Small business commercial and industrial and commercial real estate		2,118,623		8.8		2,074,538		8.9		1,886,660		8.4		231,963			12.3
Total Commercial		10,302,978		42.7		9,913,704		42.5		9,485,600		42.4		817,378			8.6
Consumer
Automobile loans		1,948,667		8.1		1,884,924		8.1		2,991,642		13.4		(1,042,975	)		(34.9	)
Automobile leases		2,443,455		10.1		2,316,801		9.9		1,902,170		8.5		541,285			28.5
Home equity (2) (4)		4,554,540		18.9		4,429,626		19.0		3,733,861		16.7		820,679			22.0
Residential mortgage (3)		3,829,234		15.9		3,565,670		15.3		2,530,665		11.3		1,298,569			51.3
Other loans (4)		481,403		2.0		476,534		2.0		431,180		1.9		50,223			11.6
Total Consumer		13,257,299		54.9		12,673,555		54.4		11,589,518		51.8		1,667,781			14.4
Total Loans and Direct Financing Leases	$	23,560,277		97.6	$	22,587,259		96.9	$	21,075,118		94.2	$	2,485,159			11.8
Operating lease assets		587,310		2.4		717,411		3.1		1,260,440		5.6		(673,130	)		(53.4	)
Securitized loans		—		—		—		—		37,337		0.2		(37,337	)		N.M.
Total Credit Exposure	$	24,147,587		100.0	$	23,304,670		100.0	$	22,372,895		100.0	$	1,774,692			7.9	%
Total Automobile Exposure (5)	$	4,979,432		20.6	$	4,919,136		21.1	$	6,191,589		27.7	$	(1,212,157	)		(19.6	)%
By Business Segment (6)
Regional Banking
Central Ohio	$	6,227,634		25.8	$	5,944,288		25.5	$	4,652,072		20.8	$	1,575,562			33.9	%
Northern Ohio		2,856,458		11.8		2,808,724		12.1		2,578,969		11.5		277,489			10.8
Southern Ohio / Kentucky		1,895,549		7.8		1,826,034		7.8		1,676,930		7.5		218,619			13.0
West Michigan		2,271,313		9.4		2,235,619		9.6		2,076,734		9.3		194,579			9.4
East Michigan		1,430,169		5.9		1,387,543		6.0		1,267,682		5.7		162,487			12.8
West Virginia		881,470		3.7		866,120		3.7		801,938		3.6		79,532			9.9
Indiana		961,700		4.0		862,833		3.7		730,620		3.3		231,080			31.6
Total Regional Banking		16,524,293		68.4		15,931,161		68.4		13,784,945		61.7		2,739,348			19.9
Dealer Sales		5,933,538		24.6		5,774,482		24.8		7,095,900		31.7		(1,162,362	)		(16.4	)
Private Financial Group		1,487,753		6.2		1,395,223		6.0		1,296,412		5.8		191,341			14.8
Treasury / Other		202,003		0.8		203,804		0.8		195,638		0.8		6,365			3.3
Total Credit Exposure	$	24,147,587		100.0	$	23,304,670		100.0	$	22,372,895		100.0	$	1,774,692			7.9	%

N.M. - Not Meaningful

(1)	Effective June 30, 2004, $282 million of commercial and industrial loans were reclassified to commercial real estate to conform to the classification of these loans with the presentation of similar loans.
(2)	Home equity includes personal lines of credit and other consumer loans secured by first or junior mortgages on residential property originated and underwritten through the company’s retail banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(3)	Residential mortgage includes loans secured by first mortgages on residential property originated and underwritten through the company’s mortgage banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(4)	Effective December 31, 2004, unsecured personal credit line loans were reclassified from “Home equity loans” to “Other loans” in all periods presented.
(5)	Sum of automobile loans and leases, operating lease assets, and securitized loans.
(6)	Prior period amounts have been reclassified to conform to the current period business segment structure.

2

Huntington Bancshares Incorporated

Deposit Composition

													Change
	December 31, 2004				September 30, 2004				December 31, 2003				December ’04 vs ’03
(in thousands)	Balance		%		Balance		%		Balance		%		Amount			Percent
	(Unaudited)				(Unaudited)
By Type
Demand deposits
Non-interest bearing	$	3,392,123		16.3	$	3,264,145		16.2	$	2,986,992		16.2	$	405,131			13.6	%
Interest bearing		7,786,377		37.5		7,471,779		37.2		6,411,380		34.7		1,374,997			21.4
Savings deposits		2,977,204		14.3		2,982,836		14.8		2,959,993		16.0		17,211			0.6
Retail certificates of deposit		2,466,965		11.9		2,441,387		12.1		2,461,531		13.3		5,434			0.2
Other domestic time deposits		525,348		2.5		587,658		2.9		631,205		3.4		(105,857	)		(16.8	)
Total Core Deposits		17,148,017		82.6		16,747,805		83.3		15,451,101		83.6		1,696,916			11.0
Domestic time deposits of $100,000 or more		1,081,660		5.2		997,952		5.0		789,341		4.3		292,319			37.0
Brokered time deposits and negotiable CDs		2,097,537		10.1		1,896,135		9.4		1,771,738		9.6		325,799			18.4
Foreign time deposits		440,947		2.1		467,133		2.3		475,215		2.6		(34,268	)		(7.2	)
Total Deposits	$	20,768,161		100.0	$	20,109,025		100.0	$	18,487,395		100.0	$	2,280,766			12.3	%
Core Deposits:
Commercial	$	5,293,666		30.9	$	5,227,613		31.2	$	4,254,904		27.5	$	1,038,762			24.4	%
Personal		11,854,351		69.1		11,520,192		68.8		11,196,197		72.5		658,154			5.9
Total Core Deposits	$	17,148,017		100.0	$	16,747,805		100.0	$	15,451,101		100.0	$	1,696,916			11.0	%
By Business Segment (1)
Regional Banking
Central Ohio	$	4,700,301		22.6	$	4,399,547		21.9	$	4,183,982		22.6	$	516,319			12.3	%
Northern Ohio		4,068,926		19.6		4,014,703		20.0		3,505,457		19.0		563,469			16.1
Southern Ohio / Kentucky		1,745,910		8.4		1,601,147		8.0		1,441,875		7.8		304,035			21.1
West Michigan		2,643,546		12.7		2,699,172		13.4		2,457,296		13.3		186,250			7.6
East Michigan		2,225,832		10.7		2,169,538		10.8		1,988,200		10.8		237,632			12.0
West Virginia		1,375,060		6.6		1,380,823		6.9		1,314,450		7.1		60,610			4.6
Indiana		664,022		3.2		665,683		3.3		647,662		3.5		16,360			2.5
Total Regional Banking		17,423,597		83.8		16,930,613		84.3		15,538,922		84.1		1,884,675			12.1
Dealer Sales		76,335		0.4		69,924		0.3		77,408		0.4		(1,073	)		(1.4	)
Private Financial Group		1,172,577		5.6		1,124,894		5.6		1,164,020		6.3		8,557			0.7
Treasury / Other (2)		2,095,652		10.2		1,983,594		9.8		1,707,045		9.2		388,607			22.8
Total Deposits	$	20,768,161		100.0	$	20,109,025		100.0	$	18,487,395		100.0	$	2,280,766			12.3	%

N.M. - Not Meaningful

⁽¹⁾ Prior period amounts have been reclassified to conform to the current period business segment structure.

⁽²⁾ Comprised largely of brokered deposits and negotiable CDs.

3

Huntington Bancshares Incorporated

Consolidated Quarterly Average Balance Sheets
(Unaudited)

	Average Balances															Change
(in millions)				2004									2003			4Q04 vs 4Q03
Fully Taxable Equivalent Basis	Fourth			Third			Second			First			Fourth			Amount			Percent
Assets
Interest bearing deposits in banks	$	60		$	55		$	69		$	79		$	83		$	(23	)		(27.7	)%
Trading account securities		228			148			28			16			11			217			N.M.
Federal funds sold and securities purchased under resale agreements		695			318			168			92			117			578			N.M.
Loans held for sale		229			283			254			207			295			(66	)		(22.4	)
Investment securities:
Taxable		3,858			4,340			4,861			4,646			4,093			(235	)		(5.7	)
Tax exempt		404			398			410			437			421			(17	)		(4.0	)
Total Investment Securities		4,262			4,738			5,271			5,083			4,514			(252	)		(5.6	)
Loans and Leases:
Commercial:
Middle market commercial and industrial		4,508			4,303			4,564			4,450			4,493			15			0.3
Middle market real estate:
Construction		1,587			1,523			1,281			1,285			1,265			322			25.5
Commercial		1,887			1,949			1,950			1,903			1,882			5			0.3
Total middle market real estate		3,474			3,472			3,231			3,188			3,147			327			10.4
Small business commercial and industrial and commercial real estate		2,086			2,031			1,969			1,925			1,869			217			11.6
Total Commercial		10,068			9,806			9,764			9,563			9,509			559			5.9
Consumer:
Automobile loans		1,913			1,857			2,337			3,041			3,529			(1,616	)		(45.8	)
Automobile leases		2,388			2,250			2,139			1,988			1,802			586			32.5
Automobile loans and leases		4,301			4,107			4,476			5,029			5,331			(1,030	)		(19.3	)
Home equity (1) (3)		4,489			4,337			4,107			3,810			3,624			865			23.9
Residential mortgage (2)		3,695			3,484			2,986			2,674			2,501			1,194			47.7
Other loans (3)		479			461			434			426			441			38			8.6
Total Consumer		12,964			12,389			12,003			11,939			11,897			1,067			9.0
Total Loans and Leases		23,032			22,195			21,767			21,502			21,406			1,626			7.6
Allowance for loan and lease losses		(283	)		(288	)		(310	)		(313	)		(350	)		67			19.1
Net Loans and Leases		22,749			21,907			21,457			21,189			21,056			1,693			8.0
Total Earning Assets		28,506			27,737			27,557			26,979			26,426			2,080			7.9
Operating lease assets		648			800			977			1,166			1,355			(707	)		(52.2	)
Cash and due from banks		880			928			772			740			766			114			14.9
Intangible assets		216			216			216			217			217			(1	)		(0.5	)
All other assets		2,094			2,066			2,101			2,046			2,009			85			4.2
Total Assets	$	32,061		$	31,459		$	31,313		$	30,835		$	30,423		$	1,638			5.4	%
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing deposits	$	3,401		$	3,276		$	$3,223		$	3,017		$	3,131		$	270			8.6	%
Interest bearing demand deposits		7,658			7,384			7,168			6,609			6,466			1,192			18.4
Savings deposits		2,819			2,841			2,839			2,819			2,824			(5	)		(0.2	)
Retail certificates of deposit		2,454			2,414			2,400			2,399			2,492			(38	)		(1.5	)
Other domestic time deposits		576			595			600			637			631			(55	)		(8.7	)
Total Core Deposits		16,908			16,510			16,230			15,481			15,544			1,364			8.8
Domestic time deposits of $100,000 or more		990			886			795			788			828			162			19.6
Brokered time deposits and negotiable CDs		1,948			1,755			1,737			1,907			1,851			97			5.2
Foreign time deposits		465			476			542			549			522			(57	)		(10.9	)
Total Deposits		20,311			19,627			19,304			18,725			18,745			1,566			8.4
Short-term borrowings		1,302			1,342			1,396			1,603			1,433			(131	)		(9.1	)
Federal Home Loan Bank advances		1,270			1,270			1,270			1,273			1,273			(3	)		(0.2	)
Subordinated notes and other long-term debt, including preferred capital securities		5,099			5,244			5,623			5,557			5,432			(333	)		(6.1	)
Total Interest Bearing Liabilities		24,581			24,207			24,370			24,141			23,752			829			3.5
All other liabilities		1,598			1,564			1,397			1,399			1,312			286			21.8
Shareholders’ equity		2,481			2,412			2,323			2,278			2,228			253			11.4
Total Liabilities and Shareholders’ Equity	$	32,061		$	31,459		$	$31,313		$	30,835		$	30,423		$	1,638			5.4	%

N.M. - Not Meaningful

(1)	Home equity includes personal lines of credit and other consumer loans secured by first or junior mortgages on residential property originated and underwritten through the company’s retail banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(2)	Residential mortgage includes loans secured by first mortgages on residential property originated and underwritten through the company’s mortgage banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(3)	Effective December 31, 2004, unsecured personal credit line loans were reclassified from “Home equity loans” to “Other loans” in all periods presented.

 4 

Huntington Bancshares Incorporated

Consolidated Quarterly Net Interest Margin Analysis

(Unaudited)

	Average Rates (2)
	2004												2003
Fully Taxable Equivalent Basis (1)	Fourth			Third			Second			First			Fourth
Assets
Interest bearing deposits in banks		1.61	%		0.91	%		1.05	%		0.71	%		0.60	%
Trading account securities		4.15			4.44			3.02			3.98			2.39
Federal funds sold and securities purchased under resale agreements		1.99			1.53			1.21			1.41			1.30
Loans held for sale		5.69			5.25			5.17			5.33			5.31
Investment securities:
Taxable		3.77			3.83			3.83			4.06			4.24
Tax exempt		6.89			7.06			7.07			6.88			6.91
Total Investment Securities		4.07			4.10			4.09			4.30			4.49
Loans and Leases:
Commercial:
Middle market commercial and industrial		4.80			4.46			4.05			4.33			4.71
Middle market real estate:
Construction		4.65			4.13			3.73			3.68			4.21
Commercial		4.81			4.45			4.20			4.31			4.55
Total middle market real estate		4.74			4.31			4.02			4.05			4.41
Small business commercial and industrial and commercial real estate		5.69			5.47			5.35			5.49			5.56
Total Commercial		4.96			4.62			4.30			4.47			4.78
Consumer:
Automobile loans		7.31			7.65			7.20			6.93			6.90
Automobile leases		5.00			5.02			5.06			4.94			4.98
Automobile loans and leases		6.02			6.21			6.17			6.14			6.25
Home equity (3)(5)		5.30			4.84			4.75			4.69			5.09
Residential mortgage (4)		5.53			5.48			5.40			5.51			5.77
Other loans (5)		6.87			6.54			6.21			5.83			6.87
Total Consumer		5.66			5.54			5.49			5.52			5.64
Total Loans and Leases		5.34			5.12			4.95			5.04			5.26
Total Earning Assets		5.05	%		4.89	%		4.76	%		4.89	%		5.11	%
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing deposits		—	%		—	%		—	%		—	%		—	%
Interest bearing demand deposits		1.21			1.06			0.94			0.88			0.91
Savings deposits		0.86			0.83			0.82			0.94			1.22
Retail certificates of deposit		3.38			3.32			3.27			3.47			3.54
Other domestic time deposits		3.20			3.22			3.19			3.48			3.69
Total Core Deposits		1.62			1.52			1.45			1.53			1.65
Domestic time deposits of $100,000 or more		2.51			2.40			2.37			2.14			2.37
Brokered time deposits and negotiable CDs		2.26			1.84			1.57			1.51			1.52
Foreign time deposits		0.98			0.83			0.76			0.72			0.75
Total Deposits		1.73			1.58			1.48			1.53			1.64
Short-term borrowings		1.17			0.92			0.80			0.83			0.78
Federal Home Loan Bank advances		2.68			2.60			2.52			2.50			2.24
Subordinated notes and other long-term debt		2.67			2.62			2.24			2.33			2.63
Total Interest Bearing Liabilities		1.94	%		1.82	%		1.66	%		1.71	%		1.85	%
Net interest rate spread		3.11	%		3.07	%		3.10	%		3.18	%		3.26	%
Impact of non-interest bearing funds on margin		0.27			0.23			0.19			0.18			0.16
Net Interest Margin		3.38	%		3.30	%		3.29	%		3.36	%		3.42	%

(1)	Fully taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 6 for the FTE adjustment.
(2)	Loan, lease, and deposit average rates include impact of applicable derivatives and non-deferrable fees.
(3)	Home equity includes personal lines of credit and other consumer loans secured by first or junior mortgages on residential property originated and underwritten through the company’s retail banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(4)	Residential mortgage includes loans secured by first mortgages on residential property originated and underwritten through the company’s mortgage banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(5)	Effective December 31, 2004, unsecured personal credit line loans were reclassified from “Home equity loans” to “Other loans” in all periods presented.

5

Huntington Bancshares Incorporated

Selected Quarterly Income Statement Data

(Unaudited)

	2004												2003			4Q04 vs 4Q03
(in thousands, except per share amounts)	Fourth			Third			Second			First			Fourth			Amount				Percent
Interest Income	$	359,215		$	338,002		$	324,167		$	325,931		$	335,097			$	24,118			7.2	%
Interest Expense		120,147			110,944			101,604			103,246			110,782				9,365			8.5
Net Interest Income		239,068			227,058			222,563			222,685			224,315				14,753			6.6
Provision for credit losses		12,654			11,785			5,027			25,596			26,341				(13,687	)		(52.0	)
Net Interest Income After
Provision for Credit Losses		226,414			215,273			217,536			197,089			197,974				28,440			14.4
Operating lease income		55,106			64,412			78,706			88,867			105,307				(50,201	)		(47.7	)
Service charges on deposit accounts		41,747			43,935			43,596			41,837			44,763				(3,016	)		(6.7	)
Trust services		17,315			17,064			16,708			16,323			15,793				1,522			9.6
Brokerage and insurance income		12,879			13,200			13,523			15,197			14,344				(1,465	)		(10.2	)
Bank owned life insurance income		10,484			10,019			11,309			10,485			10,410				74			0.7
Other service charges and fees		10,617			10,799			10,645			9,513			9,237				1,380			14.9
Mortgage banking		8,822			4,448			23,322			(4,296	)		9,677				(855	)		(8.8	)
Securities gains (losses)		2,100			7,803			(9,230	)		15,090			1,280				820			64.1
Gain on sales of automobile loans		—			312			4,890			9,004			16,288				(16,288	)		N.M.
Other		23,870			17,899			24,659			25,619			19,411				4,459			23.0
Total Non-Interest Income		182,940			189,891			218,128			227,639			246,510				(63,570	)		(25.8	)
Personnel costs		122,738			121,729			119,715			121,624			115,762				6,976			6.0
Operating lease expense		48,320			54,885			62,563			70,710			85,609				(37,289	)		(43.6	)
Net occupancy		26,082			16,838			16,258			16,763			14,925				11,157			74.8
Outside data processing and other services		18,563			17,527			17,563			18,462			15,957				2,606			16.3
Equipment		15,733			15,295			16,228			16,086			16,840				(1,107	)		(6.6	)
Professional services		9,522			12,219			7,836			7,299			12,175				(2,653	)		(21.8	)
Marketing		5,581			5,000			8,069			7,839			6,895				(1,314	)		(19.1	)
Telecommunications		4,596			5,359			4,638			5,194			5,272				(676	)		(12.8	)
Printing and supplies		3,148			3,201			3,098			3,016			3,417				(269	)		(7.9	)
Amortization of intangibles		205			204			204			204			204				1			0.5
Restructuring reserve releases		—			(1,151	)		—			—			(351	)			351			N.M.
Loss on early extinguishment of debt		—			—			—			—			15,250				(15,250	)		N.M.
Other		26,526			22,317			25,981			18,457			25,510				1,016			4.0
Total Non-Interest Expense		281,014			273,423			282,153			285,654			317,465				(36,451	)		(11.5	)
Income Before Income Taxes		128,340			131,741			153,511			139,074			127,019				1,321			1.0
Provision for income taxes		37,201			38,255			43,384			34,901			33,758				3,443			10.2
Net Income	$	91,139		$	93,486		$	110,127		$	104,173		$	93,261			$	(2,122	)		(2.3	)%
Average common shares - diluted		235,462			234,348			232,659			232,915			231,986				3,476			1.5	%
Per Common Share:
Net Income - Diluted	$	0.39		$	0.40		$	0.47		$	0.45		$	0.40				(0.01	)		(2.5	)
Cash Dividends Declared		0.200			0.200			0.175			0.175			0.175				0.025			14.3
Return on:
Average total assets (1)		1.13	%		1.18	%		1.41	%		1.36	%		1.22	%			(0.09	)%		(7.4	)
Average total shareholders’ equity (1)		14.6			15.4			19.1			18.4			16.6				(2.0	)		(12.0	)
Net interest margin (2)		3.38			3.30			3.29			3.36			3.42				(0.04	)		(1.2	)
Efficiency ratio (3)		66.4			66.3			62.3			65.1			67.1				(0.7	)		(1.0	)
Effective tax rate		29.0			29.0			28.3			25.1			26.6				2.4			9.0
Revenue - Fully Taxable Equivalent (FTE)
Net Interest Income	$	239,068		$	227,058		$	222,563		$	222,685		$	224,315			$	14,753			6.6
FTE Adjustment (2)		2,847			2,864			2,919			3,023			2,954				(107	)		(3.6	)
Net Interest Income		241,915			229,922			225,482			225,708			227,269				14,646			6.4
Non-Interest Income		182,940			189,891			218,128			227,639			246,510				(63,570	)		(25.8	)
Total Revenue	$	424,855		$	419,813		$	443,610		$	453,347		$	473,779			$	(48,924	)		(10.3	)%

N.M. - Not Meaningful.
(1)	Based on income before cumulative effect of change in accounting principle, net of tax.
(2)	On a fully taxable equivalent (FTE) basis assuming a 35% tax rate.
(3)	Non-interest expense less amortization of intangibles divided by the sum of FTE net interest income and non-interest income excluding securities gains (losses).

6

Huntington Bancshares Incorporated

Quarterly Credit Reserves and Net Charge-off Analysis

(Unaudited)

	2004												2003
(in thousands)	Fourth			Third			Second			First			Fourth
Allowance for Loan and Leases Losses, Beginning of Period	$	282,650		$	286,935		$	295,377		$	299,732		$	336,398
Loan and lease losses		(31,737	)		(26,366	)		(30,845	)		(37,167	)		(68,023	)
Recoveries of loans previously charged off		10,824			9,886			18,330			8,540			12,880
Net loan and lease losses		(20,913	)		(16,480	)		(12,515	)		(28,627	)		(55,143	)
Provision for credit losses		12,654			11,785			5,027			25,596			26,341
Net change in allowance for unfunded loan commitments and letters of credit		(3,180	)		1,186			896			3,433			(1,785	)
Allowance of assets sold and securitized		—			(776	)		(1,850	)		(4,757	)		(6,079	)
Allowance for Loan and Lease Losses, End of Period	$	271,211		$	282,650		$	286,935		$	295,377		$	299,732
Allowance for Unfunded Loan Commitments and Letters of Credit, Beginning of Period	$	30,007		$	31,193		$	32,089		$	35,522		$	33,737
Net change		3,180			(1,186	)		(896	)		(3,433	)		1,785
Allowance for Unfunded Loan Commitments and Letters of Credit, End of Period	$	33,187		$	30,007		$	31,193		$	32,089		$	35,522
Total Allowances for Credit Losses	$	304,398		$	312,657		$	318,128		$	327,466		$	335,254
Allowance for loan and lease losses (ALLL) as % of:
Transaction reserve		0.78			0.84			0.86			0.91			0.88
Economic reserve		0.32			0.33			0.36			0.38			0.40
Specific reserve		0.05			0.08			0.10			0.10			0.14
Total Loans and Leases		1.15	%		1.25	%		1.32	%		1.39	%		1.42	%
Non-performing loans and leases (NPLs)		424			417			464			383			397
Non-performing assets (NPAs)		250			351			384			322			343
Total allowances for credit losses (ACL) as % of:
Total loans and leases		1.29	%		1.38	%		1.46	%		1.55	%		1.59	%
Non-performing loans and leases		476			461			515			425			444
Non-performing assets		280			389			426			357			384
Net Charge-offs by Loan and Lease Type:
Commercial:
Middle market commercial and industrial	$	1,239		$	(102	)	$	(3,642	)	$	4,425		$	28,321
Middle market real estate:
Construction		704			(19	)		276			1,504			686
Commercial		1,834			1,490			2,222			(40	)		3,566
Total middle market real estate		2,538			1,471			2,498			1,464			4,252
Small business commercial and industrial and commercial real estate		1,386			1,195			1,281			1,704			4,356
Total Commercial		5,163			2,564			137			7,593			36,929
Consumer:
Automobile loans		4,406			5,142			5,604			13,422			11,346
Automobile leases		3,104			2,415			2,159			3,159			1,936
Automobile loans and leases		7,510			7,557			7,763			16,581			13,282
Home equity (3)		5,346			4,259			2,569			2,900			2,484
Residential mortgage		608			534			302			316			174
Other loans (3)		2,286			1,566			1,744			1,237			2,274
Total Consumer		15,750			13,916			12,378			21,034			18,214
Total Net Charge-offs	$	20,913		$	16,480		$	12,515		$	28,627		$	55,143
Net Charge-offs — Annualized Percentages:
Commercial:
Middle market commercial and industrial		0.11	%		(0.01	)%		(0.32	)%		0.40	%		2.52	%
Middle market real estate:
Construction		0.18			—			0.09			0.47			0.22
Commercial		0.39			0.31			0.46			(0.01	)		0.76
Total middle market real estate		0.29			0.17			0.31			0.18			0.54
Small business commercial and industrial and commercial real estate		0.27			0.24			0.26			0.35			0.93
Total Commercial		0.21			0.10			0.01			0.32			1.55
Consumer:
Automobile loans		0.92			1.11			0.96			1.77			1.29
Automobile leases		0.52			0.43			0.40			0.64			0.43
Automobile loans and leases		0.70			0.74			0.69			1.32			1.00
Home equity (1) (3)		0.48			0.39			0.25			0.30			0.27
Residential mortgage (2)		0.07			0.06			0.04			0.05			0.03
Other loans (3)		1.91			1.36			1.62			1.17			2.06
Total Consumer		0.49			0.45			0.41			0.70			0.61
Net Charge-offs as a % of Average Loans		0.36	%		0.30	%		0.23	%		0.53	%		1.03	%

(1)	Home equity includes personal lines of credit and other consumer loans secured by first or junior mortgages on residential property originated and underwritten through the company’s retail banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(2)	Residential mortgage includes loans secured by first mortgages on residential property originated and underwritten through the company’s mortgage banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(3)	Effective December 31, 2004, unsecured personal credit line charge-offs were reclassified from “Home equity loans” to “Other loans” in all periods presented.

7

Huntington Bancshares Incorporated

Quarterly Non-Performing Assets and Past Due Loans and Leases

(Unaudited)

	2004												2003
(in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
Non-accrual loans and leases:
Commercial and industrial	$	24,179		$	20,098		$	24,336		$	36,854		$	33,745
Commercial real estate		4,582			14,717			11,122			16,097			18,434
Small business commercial and industrial and commercial real estate		14,601			12,087			12,368			12,124			13,607
Residential mortgage		13,545			13,197			13,952			12,052			9,695
Home equity (1)		7,055			7,685			—			—			—
Total Non-Performing Loans and Leases		63,962			67,784			61,778			77,127			75,481
Other real estate, net:
Residential		8,822			9,418			9,421			9,654			7,401
Commercial (2)		35,784			3,274			3,497			4,913			4,504
Total other real estate, net		44,606			12,692			12,918			14,567			11,905
Total Non-Performing Assets	$	108,568		$	80,476		$	74,696		$	91,694		$	87,386
Non-performing loans and leases as a % of total loans and leases		0.27	%		0.30	%		0.28	%		0.36	%		0.36	%
Non-performing assets as a % of total loans and leases and other real estate		0.46			0.36			0.34			0.43			0.41	%
Accruing loans and leases past due 90 days or more (1)	$	54,283		$	53,456		$	51,490		$	59,697		$	55,913
Accruing loans and leases past due 90 days or more as a percent of total loans and leases		0.23	%		0.24	%		0.24	%		0.28	%		0.27	%

	Quarter Ending
	2004												2003
(in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
Non-Performing Assets, Beginning of Period	$	80,476		$	74,696		$	91,694		$	87,386		$	137,077
New non-performing assets (1) (2)		61,684			22,740			25,727			27,208			38,367
Returns to accruing status		(2,248	)		—			(1,493	)		(54	)		(454	)
Loan and lease losses		(8,578	)		(5,424	)		(12,872	)		(10,463	)		(39,657	)
Payments		(8,829	)		(10,202	)		(13,571	)		(10,717	)		(22,710	)
Sales		(13,937	)		(1,334	)		(14,789	)		(1,666	)		(25,237	)
Non-Performing Assets, End of Period	$	108,568		$	80,476		$	74,696		$	91,694		$	87,386

(1)

Includes $7.7 million of nonperforming loans secured by residential real estate. As of September 30, 2004, the Company adopted a policy, consistent with its policy for residential mortgage loans, of placing home equity loans and lines on nonaccrual status when they become greater than 180 days past due. In prior quarters, these balances were included in “Accruing loans and leases past due 90 days or more.”

(2)

At December 31, 2004, other real estate owned included $35.7 million of properties that relate to the work-out of $5.9 million of mezzanine loans. These properties are subject to $29.8 million of non-recourse debt to another financial institution. Both properties are in contract for sale in the first half of 2005.

8

Huntington Bancshares Incorporated

Quarterly Stock Summary, Capital, and Other Data
(Unaudited)

Quarterly Common Stock Summary

	2004								2003
(in thousands, except per share)	Fourth		Third		Second		First		Fourth
Common Stock Price, Per Share
High (1)	$	25.380	$	25.150	$	23.120	$	23.780	$	22.550
Low (1)		23.110		22.700		20.890		21.000		19.850
Close		24.740		24.910		22.980		22.030		22.500
Average Closing Price		24.241		24.105		22.050		22.501		21.584
Dividends, Per Share
Cash dividends declared on common stock	$	0.200	$	0.200	$	0.175	$	0.175	$	0.175
Common shares outstanding
Average — Basic		231,147		229,848		229,429		229,227		228,902
Average — Diluted		235,462		234,348		232,659		232,915		231,986
Ending		231,605		230,153		229,476		229,410		229,008
Book value per share	$	10.96	$	10.69	$	10.40	$	10.31	$	9.93
Common Share Repurchase Program
Number of shares repurchased		—		—		—		—		—

Capital Data

	2004												2003
(dollars in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
Total risk-adjusted assets (2)	$	29,516,000		$	28,679,142		$	28,415,519		$	28,247,258		$	28,164,181
Tier 1 leverage ratio (2)		8.41	%		8.36	%		8.20	%		8.07	%		7.98	%
Tier 1 risk-based capital ratio (2)		9.09			9.10			8.98			8.74			8.53
Total risk-based capital ratio (2)		12.38			12.53			12.56			12.13			11.95
Tangible equity / Asset ratio		7.18			7.11			6.95			6.97			6.79
Tangible equity / Risk-weighted assets ratio (2)		7.87			7.83			7.64			7.60			7.31
Average equity / Average assets		7.74			7.67			7.42			7.39			7.32
Other Data:
Number of employees (full-time equivalent)		7,812			7,906			8,045			7,915			7,983
Number of domestic full-service banking offices (3)		342			341			341			337			338

(1)	High and low stock prices are intra-day quotes obtained from NASDAQ.
(2)	Fourth quarter 2004 figures are estimated.
(3)	Includes three Private Financial Group offices in Florida.

9

Huntington Bancshares Incorporated

Quarterly Operating Lease Performance

(Unaudited)

				2004									2003			4Q04 vs 4Q03
(in thousands)	Fourth			Third			Second			First			Fourth			Amount			Percent
Balance Sheet
Average operating lease assets outstanding	$	647,970		$	800,145		$	976,626		$	1,166,146		$	1,355,330		$	(707,360	)		(52.2	)%
Income Statement
Net rental income	$	51,016		$	60,267		$	72,402		$	83,517		$	98,223		$	(47,207	)		(48.1	)%
Fees		2,111			2,965			4,838			3,543			5,204			(3,093	)		(59.4	)
Recoveries - early terminations		1,979			1,180			1,466			1,807			1,880			99			5.3
Total Operating Lease Income		55,106			64,412			78,706			88,867			105,307			(50,201	)		(47.7	)
Depreciation and residual losses at termination		45,293			49,917			57,412			63,823			76,768			(31,475	)		(41.0	)
Losses - early terminations		3,027			4,968			5,151			6,887			8,841			(5,814	)		(65.8	)
Total Operating Lease Expense		48,320			54,885			62,563			70,710			85,609			(37,289	)		(43.6	)
Net Earnings Contribution	$	6,786		$	9,527		$	16,143		$	18,157		$	19,698		$	(12,912	)		(65.5	)%
Earnings ratios (1)
Net rental income		31.5	%		30.1	%		29.7	%		28.6	%		29.0	%		2.5	%		8.6	%
Depreciation and residual losses at termination		28.0			25.0			23.5			21.9			22.7			5.3			23.4

Definition of term(s):
Net rental income includes the lease payments earned on the equipment and vehicles that Huntington leases to its customers under operating leases. Fees include late fees, early payment fees and other non-origination fees. Recoveries represent payments received on a cash basis subsequent to a customer’s default on an operating lease and a recognition of an impairment loss on the lease. Depreciation represents the periodic depreciation of equipment and vehicles to their residual value owned by Huntington under operating leases and any accelerated depreciation where Huntington expects to receive less than the residual value from the sale of the vehicle and from insurance proceeds at the end of the lease term. Losses represent impairments recognized on equipment and vehicles where the lessee has defaulted on the operating lease.

⁽¹⁾ As a percent of average operating lease assets, quarterly and year-to-date amounts annualized.

10

Huntington Bancshares Incorporated

Consolidated Annual Average Balance Sheets

(Unaudited)

																Change
(in millions)	Annual Average Balances															2004 vs 2003
Fully Taxable Equivalent Basis	2004			2003			2002			2001			2000			Amount			Percent
Assets
Interest bearing deposits in banks	$	66		$	37		$	33		$	7		$	6		$	29			78.4	%
Trading account securities		105			14			7			25			15			91			N.M.
Federal funds sold and securities purchased under resale agreements		319			87			72			107			87			232			N.M.
Loans held for sale		243			564			322			360			109			(321	)		(56.9	)
Investment securities:
Taxable		4,425			3,533			2,859			3,144			4,316			892			25.2
Tax exempt		412			334			135			174			273			78			23.4
Total Investment Securities		4,837			3,867			2,994			3,318			4,589			970			25.1
Loans and Leases:
Commercial:
Middle market commercial and industrial		4,456			4,633			4,810			5,075			4,938			(177	)		(3.8	)
Middle market real estate:
Construction		1,420			1,219			1,151			1,040			976			201			16.5
Commercial		1,922			1,800			1,670			1,522			1,380			122			6.8
Total middle market real estate		3,342			3,019			2,821			2,562			2,356			323			10.7
Small business commercial and industrial and commercial real estate		2,003			1,787			1,642			2,574			2,526			216			12.1
Total Commercial		9,801			9,439			9,273			10,211			9,820			362			3.8
Consumer:
Automobile loans		2,285			3,260			2,744			N.M.			N.M.			(975	)		(29.9	)
Automobile leases		2,192			1,423			452			N.M.			N.M.			769			54.0
Automobile loans and leases		4,477			4,683			3,196			2,839			3,123			(206	)		(4.4	)
Home equity (1) (3)		4,187			3,441			3,029			3,334			2,921			746			21.7
Residential mortgage (2)		3,212			2,026			1,438			1,048			1,379			1,186			58.5
Other loans (3)		450			435			481			654			599			15			3.4
Total Consumer		12,326			10,585			8,144			7,875			8,022			1,741			16.4
Total Loans and Leases		22,127			20,024			17,417			18,086			17,842			2,103			10.5
Allowance for loan and lease losses		(298	)		(330	)		(344	)		(286	)		(256	)		32			(9.7	)
Net Loans and Leases		21,829			19,694			17,073			17,800			17,586			2,135			10.8
Total Earning Assets		27,697			24,593			20,845			21,903			22,648			3,104			12.6
Operating lease assets		897			1,697			2,602			2,970			2,751			(800	)		(47.1	)
Cash and due from banks		843			774			757			912			1,008			69			8.9
Intangible assets		216			218			293			736			709			(2	)		(0.9	)
All other assets		2,078			2,020			1,910			1,891			1,729			58			2.9
Total Assets	$	31,433		$	28,972		$	26,063		$	28,126		$	28,589			2,461			8.5	%
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing deposits	$	3,230		$	3,080		$	2,902		$	3,304		$	3,421			150			4.9	%
Interest bearing demand deposits		7,207			6,193			5,161			5,005			4,291			1,014			16.4
Savings deposits		2,829			2,802			2,853			3,478			3,563			27			1.0
Retail certificates of deposit		2,417			2,702			3,619			4,980			4,930			(285	)		(10.5	)
Other domestic time deposits		602			660			730			903			942			(58	)		(8.8	)
Total Core Deposits		16,285			15,437			15,265			17,670			17,147			848			5.5
Domestic time deposits of $100,000 or more		865			802			851			1,280			1,502			63			7.9
Brokered time deposits and negotiable CDs		1,837			1,419			731			128			502			418			29.5
Foreign time deposits		508			500			337			283			539			8			1.6
Total Deposits		19,495			18,158			17,184			19,361			19,690			1,337			7.4
Short-term borrowings		1,410			1,600			1,856			2,099			1,966			(190	)		(11.9	)
Federal Home Loan Bank advances		1,271			1,258			279			19			13			13			1.0
Subordinated notes and other long-term debt, including preferred capital securities		5,379			4,559			3,335			3,411			4,005			820			18.0
Total Interest Bearing Liabilities		24,325			22,495			19,752			21,586			22,253			1,830			8.1
All other liabilities		1,504			1,201			1,170			905			723			303			25.2
Shareholders’ equity		2,374			2,196			2,239			2,331			2,192			178			8.1
Total Liabilities and Shareholders’ Equity	$	31,433		$	28,972		$	26,063		$	28,126		$	28,589			2,461			8.5	%

N.M. — Not Meaningful.
(1)	Home equity includes personal lines of credit and other consumer loans secured by first or junior mortgages on residential property originated and underwritten through the company’s retail banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(2)	Residential mortgage includes loans secured by first mortgages on residential property originated and underwritten through the company’s mortgage banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(3)	Effective December 31, 2004, unsecured personal credit line loans were reclassified from “Home equity loans” to “Other loans” in all periods presented.

11

Huntington Bancshares Incorporated

Consolidated Annual Net Interest Margin Analysis

(Unaudited)

	Annual Average Rates (2)
Fully Taxable Equivalent Basis (1)	2004			2003			2002			2001			2000
Assets
Interest bearing deposits in banks		1.05	%		1.53	%		2.38	%		3.43	%		5.03	%
Trading account securities		4.15			4.02			4.11			5.13			7.11
Federal funds sold and securities purchased under resale agreements		1.73			1.80			1.56			4.19			6.33
Loans held for sale		5.35			5.32			6.35			6.95			7.96
Investment securities:
Taxable		3.88			4.52			6.06			6.58			6.24
Tax exempt		6.98			7.04			7.42			7.49			7.61
Total Investment Securities		4.14			4.73			6.12			6.63			6.33
Loans and Leases:
Commercial:
Middle market commercial and industrial		4.41			4.95			5.45			6.96			8.39
Middle market real estate:
Construction		4.09			4.09			4.57			6.99			8.98
Commercial		4.44			4.84			5.91			7.44			8.36
Total middle market real estate		4.29			4.54			5.36			7.26			8.62
Small business commercial and industrial and commercial real estate		5.50			5.91			6.73			7.96			9.13
Total Commercial		4.59			5.00			5.65			7.29			8.64
Consumer:
Automobile loans		7.22			7.38			8.67			N.M			N.M
Automobile leases		5.00			5.09			5.14			N.M			N.M
Automobile loans and leases		6.14			6.68			8.17			8.94			8.67
Home equity (3) (5)		4.91			5.14			5.96			8.23			8.52
Residential mortgage (4)		5.48			5.85			6.55			8.19			8.00
Other loans (5)		6.38			6.71			7.40			8.40			10.14
Total Consumer		5.56			5.93			6.98			8.44			8.57
Total Loans and Leases		5.11			5.49			6.27			7.79			8.61
Total Earning Assets		4.89	%		5.35	%		6.23	%		7.58	%		8.13	%
Liabilities and Shareholders’ Equity
Deposits:
Non-interest bearing deposits		—	%		—	%		—	%		—	%		—	%
Interest bearing demand deposits		1.03			1.18			1.71			2.64			3.30
Savings deposits		0.86			1.49			1.77			3.07			4.09
Retail certificates of deposit		3.36			3.68			4.58			5.65			5.72
Other domestic time deposits		3.27			3.86			4.05			5.34			5.52
Total Core Deposits		1.53			1.94			2.70			3.95			4.52
Domestic time deposits of $100,000 or more		2.37			2.50			3.39			5.22			6.01
Brokered time deposits and negotiable CDs		1.80			1.70			2.36			5.12			6.35
Foreign time deposits		0.82			0.92			1.47			3.82			6.31
Total Deposits		1.58			1.91			2.69			4.06			4.77
Short-term borrowings		0.93			0.98			1.56			4.57			5.75
Federal Home Loan Bank advances		2.57			1.94			2.00			6.17			6.32
Subordinated notes and other long-term debt		2.46			2.82			3.70			5.52			6.74
Total Interest Bearing Liabilities		1.79	%		2.03	%		2.75	%		4.34	%		5.22	%
Net interest rate spread		3.10	%		3.32	%		3.48	%		3.24	%		2.91	%
Impact of non-interest bearing funds on margin		0.23			0.17			0.14			0.05			0.09
Net Interest Margin		3.33	%		3.49	%		3.62	%		3.29	%		3.00	%

N.M. - Not Meaningful

(1)	Fully taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 13 for the FTE adjustment.
(2)	Loan and lease and deposit average rates include impact of applicable derivatives and non-deferrable fees.
(3)	Home equity includes personal lines of credit and other consumer loans secured by first or junior mortgages on residential property originated and underwritten through the company’s retail banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(4)	Residential mortgage includes loans secured by first mortgages on residential property originated and underwritten through the company’s mortgage banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.
(5)	Effective December 31, 2004, unsecured personal credit line loans were reclassified from “Home equity loan” to “Other loans” in all periods presented.

12

Huntington Bancshares Incorporated

Selected Annual Income Statement Data

(Unaudited)

																Change
																2004 vs 2003
(in thousands of dollars, except per share amounts)	2004			2003			2002			2001			2000			Amount			Percent
Interest Income	$	1,347,315		$	1,305,756		$	1,293,195		$	1,654,789		$	1,833,388		$	41,559			3.2	%
Interest Expense		435,941			456,770			543,621			939,501			1,163,278			(20,829	)		(4.6	)
Net Interest Income		911,374			848,986			749,574			715,288			670,110			62,388			7.3
Provision for credit losses		55,062			163,993			194,426			257,326			61,464			(108,931	)		(66.4	)
Net Interest Income After Provision for Credit Losses		856,312			684,993			555,148			457,962			608,646			171,319			25.0
Operating lease income		287,091			489,698			657,074			691,733			623,835			(202,607	)		(41.4	)
Service charges on deposit accounts		171,115			167,840			153,564			165,012			161,426			3,275			2.0
Trust services		67,410			61,649			62,051			60,298			53,613			5,761			9.3
Brokerage and insurance income		54,799			57,844			62,109			79,034			61,871			(3,045	)		(5.3	)
Bank owned life insurance income		42,297			43,028			43,123			41,123			39,544			(731	)		(1.7	)
Other service charges and fees		41,574			41,446			42,888			48,217			43,883			128			0.3
Mortgage banking		32,296			58,180			32,033			54,518			32,772			(25,884	)		(44.5	)
Securities gains		15,763			5,258			4,902			723			37,101			10,505			N.M.
Gain on sales of automobile loans		14,206			40,039			—			—			—			(25,833	)		(64.5	)
Gain on sale of branch offices		—			13,112			—			—			—			(13,112	)		N.M.
Gain on sale of Florida operations		—			—			182,470			—			—			—			—
Merchant Services gain		—			—			24,550			—			—			—			—
Other		92,047			91,059			76,940			59,284			69,157			988			1.1
Total Non-Interest Income		818,598			1,069,153			1,341,704			1,199,942			1,123,202			(250,555	)		(23.4	)
Personnel costs		485,806			447,263			418,037			454,210			396,230			38,543			8.6
Operating lease expense		236,478			393,270			518,970			558,626			494,800			(156,792	)		(39.9	)
Net occupancy		75,941			62,481			59,539			76,449			75,197			13,460			21.5
Outside data processing and other services		72,115			66,118			67,368			69,692			62,011			5,997			9.1
Equipment		63,342			65,921			68,323			80,560			78,069			(2,579	)		(3.9	)
Professional services		36,876			42,448			33,085			32,862			22,721			(5,572	)		(13.1	)
Marketing		26,489			27,490			27,911			31,057			34,884			(1,001	)		(3.6	)
Telecommunications		19,787			21,979			22,661			27,984			26,225			(2,192	)		(10.0	)
Printing and supplies		12,463			13,009			15,198			18,367			19,634			(546	)		(4.2	)
Amortization of intangibles		817			816			2,019			41,225			39,207			1			0.1
Restructuring reserve (releases) charges		(1,151	)		(6,666	)		48,973			79,957			—			5,515			(82.7	)
Loss on early extinguishment of debt		—			15,250			—			—			—			(15,250	)		N.M.
Other		93,281			80,780			92,063			91,438			34,153			12,501			15.5
Total Non-Interest Expense		1,122,244			1,230,159			1,374,147			1,562,427			1,283,131			(107,915	)		(8.8	)
Income Before Income Taxes		552,666			523,987			522,705			95,477			448,717			28,679			5.5
Provision (benefit) for income taxes		153,741			138,294			198,974			(39,319	)		126,299			15,447			11.2
Income before cumulative effect of change in accounting principle		398,925			385,693			323,731			134,796			322,418			13,232			3.4
Cumulative effect of change in accounting principle, net of tax (1)		—			(13,330	)		—			—			—			13,330			N.M.
Net Income	$	398,925		$	372,363		$	323,731		$	134,796		$	322,418		$	26,562			7.1	%
Per Common Share
Income before cumulative effect of change in accounting principle - Diluted	$	1.71		$	1.67		$	1.33		$	0.54		$	1.29		$	0.04			2.4	%
Net Income - Diluted		1.71			1.61			1.33			0.54			1.29			0.10			6.2
Cash Dividends Declared		0.750			0.670			0.640			0.720			0.760			0.080			11.9
Return on:
Average total assets (2)		1.27	%		1.33	%		1.24	%		0.48	%		1.13	%		(0.06	)%		(4.5	)%
Average total shareholders’ equity (2)		16.8			17.6			14.5			5.8			14.7			(0.8	)		(4.5	)
Net interest margin (3)		3.33			3.49			3.62			3.29			3.00			(0.16	)		(4.6	)
Efficiency ratio (4)		65.0			63.9			65.6			79.2			70.5			1.1			1.7
Effective tax rate		27.8			26.4			38.1			(41.2	)(5)		28.1			1.4			5.3
Revenue - Fully Taxable Equivalent (FTE)
Net Interest Income	$	911,374		$	848,986		$	749,574		$	715,288		$	670,110		$	62,388			7.3	%
FTE Adjustment (3)		11,653			9,684			5,205			6,352			8,310			1,969			20.3
Net Interest Income		923,027			858,670			754,779			721,640			678,420			64,357			7.5
Non-Interest Income		818,598			1,069,153			1,341,704			1,199,942			1,123,202			(250,555	)		(23.4	)
Total Revenue	$	1,741,625		$	1,927,823		$	2,096,483		$	1,921,582		$	1,801,622		$	(186,198	)		(9.7	)%

N.M. — Not Meaningful.
(1)	Due to the adoption of FASB Interpretation No. 46 for variable interest entities.
(2)	Based on income before cumulative effect of change in accounting principle, net of tax.
(3)	On a fully taxable equivalent (FTE) basis assuming a 35% tax rate.
(4)	Non-interest expense less amortization of intangibles divided by the sum of FTE net interest income and non-interest income excluding securities gains.
(5)	Reflects a $32.5 million reduction related to the issuance of $400 million REIT subsidiary preferred stock, of which $50 million was sold to the public.

13

Huntington Bancshares Incorporated

Annual Credit Reserves and Net Charge-off Analysis
Unaudited

(in thousands)	2004			2003			2002			2001			2000
Allowance for Loan and Leases Losses, Beginning of Period	$	299,732		$	300,503		$	345,402		$	246,758		$	255,642
Loan and lease losses		(126,115	)		(201,534	)		(234,352	)		(174,540	)		(85,825	)
Recoveries of loans previously charged off		47,580			39,725			37,440			28,271			24,178
Net loan and lease losses		(78,535	)		(161,809	)		(196,912	)		(146,269	)		(61,647	)
Provision for credit losses		55,062			163,993			194,426			257,326			61,464
Net change in allowance for unfunded loan commitments and letters of credit		2,335			623			(12,215	)		(5,759	)		118
Allowance of assets sold and securitized		(7,383	)		(3,578	)		(30,198	)		(6,654	)		(8,819	)
Allowance for Loan and Lease Losses, End of Period	$	271,211		$	299,732		$	300,503		$	345,402		$	246,758
Allowance for Unfunded Loan Commitments and Letters of Credit, Beginning of Period	$	35,522		$	36,145		$	23,930		$	18,171		$	18,289
Net change		(2,335	)		(623	)		12,215			5,759			(118	)
Allowance for Unfunded Loan Commitments and Letters of Credit, End of Period	$	33,187		$	35,522		$	36,145		$	23,930		$	18,171
Total Allowances for Credit Losses	$	304,398		$	335,254		$	336,648		$	369,332		$	264,929
Net Charge-offs by Loan and Lease Type:
Commercial:
Middle market commercial and industrial	$	1,920		$	75,803		$	104,703		$	45,338		$	6,959
Middle market real estate:
Construction		2,465			2,928			4,216			789			(1	)
Commercial		5,506			5,019			11,968			1,420			636
Total middle market real estate		7,971			7,947			16,184			2,209			635
Small business commercial and industrial and commercial real estate		5,566			11,625			14,516			15,750			7,545
Total Commercial		15,457			95,375			135,403			63,297			15,139
Consumer:
Automobile loans		28,574			40,266			39,115			N.M.			N.M.
Automobile leases		10,837			5,728			1,431			N.M.			N.M.
Automobile loans and leases		39,411			45,994			40,546			55,071			32,280
Home equity (3)		15,074			12,114			11,840			11,458			3,879
Residential mortgage		1,760			832			872			785			1,007
Other loans (3)		6,833			7,494			8,251			15,658			9,342
Total Consumer		63,078			66,434			61,509			82,972			46,508
Total Net Charge-offs	$	78,535		$	161,809		$	196,912		$	146,269		$	61,647
Net Charge-offs — Annualized Percentages:
Commercial:
Middle market commercial and industrial		0.04	%		1.64	%		2.18	%		0.89	%		0.14	%
Middle market real estate:
Construction		0.17			0.24			0.37			0.08			—
Commercial		0.29			0.28			0.72			0.09			0.05
Total middle market real estate		0.24			0.26			0.57			0.09			0.03
Small business commercial and industrial and commercial real estate		0.28			0.65			0.88			0.61			0.30
Total Commercial		0.16			1.01			1.46			0.62			0.15
Consumer:
Automobile loans		1.25			1.24			1.43			N.M.			N.M.
Automobile leases		0.49			0.40			0.32			N.M.			N.M.
Automobile loans and leases		0.88			0.98			1.27			1.94			1.03
Home equity (1)(3)		0.36			0.35			0.39			0.34			0.13
Residential mortgage (2)		0.05			0.04			0.06			0.07			0.07
Other loans (3)		1.52			1.72			1.72			2.39			1.56
Total Consumer		0.51			0.63			0.76			1.05			0.58
Net Charge-offs as a % of Average Loans		0.35	%		0.81	%		1.13	%		0.81	%		0.35	%

N.M. — Not Meaningful

⁽¹⁾ Home equity includes personal lines of credit and other consumer loans secured by first or junior mortgages on residential property originated and underwritten through the company’s retail banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.

⁽²⁾ Residential mortgage includes loans secured by first mortgages on residential property originated and underwritten through the company’s mortgage banking channel. Reclassification of prior period balances has been made to conform to this presentation, resulting in an increase to previously reported home equity loans and a decrease to previously reported residential mortgage loans.

⁽³⁾ Effective December 31, 2004, unsecured personal credit line charge-offs were reclassified from “Home equity loans” to “Other loans” in all periods presented.

14

Huntington Bancshares Incorporated

Annual Operating Lease Performance
(Unaudited)

(in thousands)	2004			2003			2002			2001			2000
Balance Sheet:
Average operating lease assets outstanding	$	896,773		$	1,696,535		$	2,601,666		$	2,969,902		$	2,751,058
Income Statement:
Net rental income	$	267,202		$	458,644		$	615,453		$	654,625		$	596,821
Fees		13,457			21,623			28,542			27,573			23,511
Recoveries — early terminations		6,432			9,431			13,079			9,535			3,503
Total Operating Lease Income		287,091			489,698			657,074			691,733			623,835
Depreciation and residual losses at termination		216,445			350,550			463,783			506,267			470,079
Losses — early terminations		20,033			42,720			55,187			52,359			24,721
Total Operating Lease Expense		236,478			393,270			518,970			558,626			494,800
Net Earnings Contribution	$	50,613		$	96,428		$	138,104		$	133,107		$	129,035
Earnings ratios (1)
Net rental income		29.8	%		27.0	%		23.7	%		22.0	%		21.7	%
Depreciation and residual losses at termination		24.1			20.7			17.8			17.0			17.1

Definition of terms:
Net rental income includes the lease payments earned on the equipment and vehicles that Huntington leases to its customers under operating leases. Fees include late fees, early payment fees and other non-origination fees. Recoveries represent payments received on a cash basis subsequent to a customer’s default on an operating lease and a recognition of an impairment loss on the lease. Depreciation represents the periodic depreciation of equipment and vehicles to their residual value owned by Huntington under operating leases and any accelerated depreciation where Huntington expects to receive less than the residual value from the sale of the vehicle and from insurance proceeds at the end of the lease term. Losses represent impairments recognized on equipment and vehicles where the lessee has defaulted on the operating lease.

⁽¹⁾ As a percent of average operating lease assets, quarterly and year-to-date amounts annualized.

15