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 20, 2011

HUNTINGTON BANCSHARES INCORPORATED

(Exact name of registrant as specified in its charter)

Maryland	1-34073	31-0724920
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer 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:

o Written 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 20, 2011, Huntington Bancshares Incorporated (“Huntington”) issued a news release announcing its earnings for the quarter ended December 31, 2010. Also on January 20, 2011, Huntington made a Quarterly Financial Review available on its web site, www.huntington-ir.com.

Huntington’s senior management will host an earnings conference call January 20, 2011, at 10:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast at www.huntington-ir.com or through a dial-in telephone number at 800-267-7495, conference ID 33285653. Slides will be available at www.huntington-ir.com just prior to the call. A replay of the web cast will be archived in the Investor Relations section of Huntington’s web site at www.huntington.com. A telephone replay will be available two hours after the completion of the call through January 31, 2011, at 800-642-1687; conference call ID 33285653.

This press release contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: (1) worsening of credit quality performance due to a number of factors such as the underlying value of the collateral could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected; (2) changes in economic conditions; (3) movements in interest rates; (4) competitive pressures on product pricing and services; (5) success, impact, and timing of our business strategies, including market acceptance of any new products or services introduced to implement our ‘Fair Play banking philosophy; (6) changes in accounting policies and principles and the accuracy of our assumptions and estimates used to prepare our financial statements;(7) extended disruption of vital infrastructure; and (8) the nature, extent, and timing of governmental actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as future regulations which will be adopted by the relevant regulatory agencies, including the newly created Consumer Financial Protection Bureau (CAP), to implement the Act’s provisions. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s 2009 Annual Report on Form 10-K, and documents subsequently filed by Huntington with the Securities and Exchange Commission. All forward-looking statements included in this release are based on information available at the time of the release. Huntington assumes no obligation to update any forward-looking statement.

Exhibit 99.2 includes certain ratios, specifically the tangible common equity ratio, and the Tier 1 common risk-based capital ratio, which are non-GAAP financial measures. These non-GAAP financial measures are included in this report because the Federal Reserve indicated that as part of their Supervisory Capital Assessment Program (SCAP), a year-end 2010 Tier 1 common risk-based capital ratio of 4.0% would be needed. Although Huntington is not one of the SCAP bank holding companies, the market has accepted this as a “de facto” standard for being adequately capitalized since 10 of the 19 bank holding companies included in SCAP were directed to increase their capital levels to meet this targeted threshold. Other companies may calculate these financial measures differently. Risk-weighted assets are calculated under regulatory capital rules applicable to us as discussed more fully on page 8 of our Form 10-K. The tangible common equity ratio, tangible assets, and Tier 1 common risk-based capital ratio were calculated as follows:

Capital Adequacy Reconciliations

	2010												2009
(in millions)	December 31,			September 30,			June 30,			March 31,			December 31,
Tangible common equity to asset ratio:
Total shareholders’ equity	$	4,981		$	5,567		$	5,438		$	5,370		$	5,336
Shareholders’ preferred equity		(363	)		(1,700	)		(1,696	)		(1,692	)		(1,688	)
		4,618			3,867			3,742			3,678			3,648
Goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Intangible assets		(229	)		(244	)		(259	)		(274	)		(289	)
Intangible asset deferred tax liability (1)		80			85			91			95			101
Total tangible common equity	$	4,025		$	3,264		$	3,130		$	3,055		$	3,016
Total assets	$	53,820		$	53,247		$	51,771		$	51,867		$	51,555
Goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Other intangible assets		(229	)		(244	)		(259	)		(274	)		(289	)
Intangible asset deferred tax liability (1)		80			85			91			95			101
Total tangible assets	$	53,227		$	52,644		$	51,159		$	51,244		$	50,923
Tangible common equity to asset ratio		7.56	%		6.20	%		6.12	%		5.96	%		5.92	%
Tier 1 common risk-based capital ratio (2)
Tier 1 capital	$	5,022		$	5,480		$	5,317		$	5,090		$	5,201
Shareholders’ preferred equity		(363	)		(1,700	)		(1,696	)		(1,692	)		(1,688	)
Trust preferred securities		(570	)		(570	)		(570	)		(570	)		(570	)
REIT preferred stock		(50	)		(50	)		(50	)		(50	)		(50	)
Tier 1 common	$	4,039		$	3,160		$	3,001		$	2,778		$	2,893
Risk weighted assets	$	43,678		$	42,759		$	42,486		$	42,418		$	42,816
Tier 1 common risk-based capital ratio		9.25	%		7.39	%		7.06	%		6.55	%		6.76	%

(1)	Intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
(2)	December 31, 2010 figures are estimated.

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

(d) Exhibits.

Exhibit 99.1	—	News release of Huntington Bancshares Incorporated, dated January 20, 2011.
Exhibit 99.2	—	Quarterly Financial Review, December 2010.

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 20, 2011	By:	/s/ Donald R. Kimble
		Donald R. Kimble
		Senior Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
Exhibit 99.1	News release of Huntington Bancshares Incorporated, January 20, 2011.
Exhibit 99.2	Quarterly Financial Review, December 2010.

EX-99.1

Exhibit 99.1

NEWS

FOR IMMEDIATE RELEASE —
Date: January 20, 2011

Contact:
Investors	Media
Jay Gould	Maureen Brown
Jay.Gould@huntington.com	Maureen.Brown@Huntington.com
(614) 480-4060	(614) 480-5512
Todd Beekman
Todd.Beekman@huntington.com
(614) 480-3878

HUNTINGTON BANCSHARES
REPORTS FOURTH QUARTER RESULTS

RESULTS COMPARED WITH 2010 THIRD QUARTER REFLECTED:

• $122.9 MILLION OF NET INCOME, UP 22% FROM $100.9 MILLION

• EARNINGS PER COMMON SHARE OF $0.05, INCLUDING A ONE-TIME REDUCTION OF $0.07 PER COMMON SHARE FOR THE DEEMED DIVIDEND RESULTING FROM THE DECEMBER REPURCHASE OF $1.4 BILLION IN TARP CAPITAL

• 10% ANNUALIZED GROWTH IN AVERAGE TOTAL CORE DEPOSITS

• 1% GROWTH IN FULLY-TAXABLE EQUIVALENT REVENUE

• 15% ANNUALIZED GROWTH IN EARNING ASSETS, INCLUDING 6% ANNUALIZED GROWTH IN AVERAGE LOANS AND LEASES

• 3.37% NET INTEREST MARGIN, DOWN 8 BASIS POINTS, PRIMARILY REFLECTING GROWTH IN LOWER YIELD INVESTMENT SECURITIES

• CONTINUED SIGNIFICANT IMPROVEMENT IN CREDIT QUALITY

• 21% DECLINE IN NONACCRUAL LOANS, LOWEST ABSOLUTE LEVEL SINCE 2008 THIRD QUARTER

• 166% ALLOWANCE FOR CREDIT LOSSES COVERAGE OF NONACCRUAL LOANS, UP FROM 140%

• SIGNIFICANTLY STRENGTHENED COMMON EQUITY RATIOS AFTER TARP CAPITAL REPURCHASE COMPARED WITH SEPTEMBER 30, 2010

• 9.25% TIER 1 COMMON RISK-BASED CAPITAL, UP FROM 7.39%

• 7.56% TANGIBLE COMMON EQUITY RATIO, UP FROM 6.20%

COLUMBUS, Ohio — Huntington Bancshares Incorporated (NASDAQ: HBAN; www.huntington.com) reported 2010 fourth quarter net income of $122.9 million, or $0.05 per common share. The current quarter included a one-time reduction of $0.07 per common share for the deemed dividend resulting from the previously announced repurchase of $1.4 billion in TARP capital in December. This compared with net income of $100.9 million, or $0.10 per common share, in the 2010 third quarter and a net loss of $369.7 million, or $0.56 per common share, in the year-ago quarter.

For full-year 2010, Huntington reported net income of $312.3 million, or $0.19 per common share. The current year included a one-time reduction of $0.08 per common share for the deemed dividend resulting from the repurchase of $1.4 billion in TARP capital. This compared with a net loss of $3.1 billion, or $6.14 per common share, for full year 2009, which included $2.6 billion pre-tax, or $4.89 per common share, of goodwill impairment charges.

“Fourth quarter results capped a good year for Huntington,” said Stephen D. Steinour, chairman and chief executive officer. “The hard work and progress we are making in organically growing our core business were clearly evident. Loan growth continued to gain traction and was broad based. Core deposit growth was again strong. This resulted in an increase in lower yield investment securities, which contributed to more of a decline in our net interest margin than we expected three months ago. But, strong earning asset growth resulted in an increase in total net interest income sufficient to overcome the expected decline in deposit service charge income. As a result, we reported another quarter of revenue growth. Credit quality again improved significantly, a trend we anticipate will continue. Importantly, we repaid our TARP capital and ended the quarter with strong regulatory capital and very strong common equity capital ratios.”

Total fully-taxable equivalent revenue for the fourth quarter was $683.2 million, up 1% from the prior quarter, driven by a $6.4 million, or 2%, increase in fully-taxable equivalent net interest income. This reflected 15% annualized growth in average earnings assets, including 6% annualized growth in average total loans and leases, and a net interest margin of 3.37%, down eight basis points from the prior quarter. Total average core deposits grew 10% annualized, with noninterest bearing demand deposits increasing at a 25% annualized rate.

Nonperforming assets (NPAs) declined 24% to $0.8 billion at December 31, 2010, from $1.1 billion at the end of the prior quarter. Total criticized commercial loans at quarter end were $3.1 billion, down 15% from $3.6 billion at September 30, 2010. While the period end allowance for credit losses (ACL) as a percentage of total loans and leases declined to 3.39% from 3.67%, the ACL as a percentage of total nonaccrual loans (NALs) increased to 166% from 140%. Net charge-offs were $172.3 million, or an annualized 1.82% of average total loans and leases, down from $184.5 million, or 1.98%, in the 2010 third quarter.

The Tier 1 common risk-based capital ratio at December 31, 2010, was 9.25%, up from 7.39% at the end of the prior quarter, with the tangible common equity ratio also showing a significant increase to 7.56% from 6.20%. The regulatory Tier 1 and Total capital ratios were 11.50% and 14.39%, respectively, down from 12.82% and 15.08%, respectively, at the end of September, primarily reflecting the repurchase of $1.4 billion of TARP capital.

“Each of the last two years represented major milestones in positioning Huntington for long-term growth,” Steinour continued. “2009 was the year we aggressively addressed our credit issues. We said that represented the high water mark. Our results since then have shown more rapid improvement in credit quality than originally envisioned. 2010 was the year we addressed our capital issues, particularly our low relative level of common equity. And we repurchased our TARP capital. From a quality of capital perspective, we have never felt better. As we enter 2011, we expect earnings will continue to grow. In the near term, and consistent with fourth quarter performance, this will mostly reflect the benefit of lower credit costs. Yet, we are beginning to see positive results from our investments in growing the business. We believe this is going to be a year when Huntington breaks away even more from our peers in both financial performance, as well as in delivering more innovative and customer friendly products and services to our customers.”

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FOURTH QUARTER PERFORMANCE DISCUSSION

EARNINGS PERFORMANCE OVERVIEW COMPARED WITH 2010 THIRD QUARTER

• Net income of $122.9 million, up $22.0 million, or 22%, from $100.9 million, reflecting:

• $32.2 million reduction in provision for credit losses as credit quality performance improved.

• $5.3 million increase in net interest income, primarily reflecting growth in loans and investment securities.

Partially offset by:

• $7.3 million increase in noninterest expenses primarily reflecting a $3.9 million increase in personnel costs related to investments in strategic initiatives, a $4.1 million increase associated with repurchase losses related to representations and warranties made on mortgage loans sold, and a $2.4 million increase in fraud losses.

• $2.9 million decline in noninterest income primarily reflecting lower service charges on deposit accounts.

• Earnings per common share of $0.05, including a one-time $0.07 per common share reduction for the deemed dividend resulting from the repurchase of our $1.4 billion in TARP capital. This compared to earnings of $0.10 per common share in the prior quarter.

• Pre-tax, pre-provision income of $260.1 million, down $5.2 million, or 2%, reflecting higher noninterest expense and lower noninterest income, partially offset by growth in net interest income.

Significant Items Influencing Financial Performance Comparisons

From time to time, revenue, expenses, or taxes are impacted by items judged by Management to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by Management at that time to be infrequent or short-term in nature. Management believes the disclosure of “Significant Items” in current and prior period results aids analysts/investors in better understanding corporate performance trends. (See Significant Items under the Basis of Presentation for a full discussion.)

3

Specific significant items impacting 2010 fourth quarter performance included (see Table 1 below):

• In connection with the redemption of our TARP Series B Preferred Stock, the accretion of the remaining issuance discount on the Series B Preferred Stock was accelerated and recorded as a deemed dividend and resulted in a corresponding reduction in retained earnings of $56.3 million. This resulted in a one-time, noncash reduction in net income attributable to common shareholders and a related $0.07 per common share reduction to basic and diluted earnings per share.

Table 1 — Significant Items Influencing Earnings Performance Comparisons

Three Months Ended	Impact (1)
(in millions, except per share)	Pre-tax			EPS (2)
December 31, 2010 — GAAP income	$	122.9		$	0.05
• Deemed dividend	NA				(0.07	)
September 30, 2010 — GAAP income	$	100.9		$	0.10
• None
December 31, 2009 — GAAP loss	$	(369.7	)	$	(0.56	)
• Gain on the early extinguishment of debt		73.6			0.07
• Deferred tax valuation allowance benefit		11.3	(2)		0.02

(1)	Favorable (unfavorable) impact on GAAP earnings; pre-tax unless otherwise noted
(2)	After-tax; EPS reflected on a fully diluted basis
NA-	Not applicable

Pre-Tax, Pre-Provision Income Trends

One metric that Management believes is useful in analyzing performance is the level of earnings adjusted to exclude provision expense, securities gains or losses, amortization of intangibles, and certain Significant Items. (See Pre-Tax, Pre-Provision Income in Basis of Presentation for a full discussion.)

4

Table 2 shows pre-tax, pre-provision income was $260.1 million in the 2010 fourth quarter, down 2% from the prior quarter.

Table 2 — Pre-Tax, Pre-Provision Income ⁽¹⁾

	2010												2009
	Fourth			Third			Second			First			Fourth
(in millions)	Quarter			Quarter			Quarter			Quarter			Quarter
Income (Loss) Before Income Taxes	$	157.9		$	130.6		$	62.1		$	1.6		$	(598.0	)
Add: Provision for credit losses		87.0			119.2			193.4			235.0			894.0
Less: Securities (losses) gains		(0.1	)		(0.3	)		0.2			(0.0	)		(2.6	)
Add: Amortization of intangibles		15.0			15.1			15.1			15.1			17.1
Less: Significant items (1)
Gain on early extinguishment of debt		—			—			—			—			73.6
Pre-Tax, Pre-Provision Income (1)	$	260.1		$	265.2		$	270.5		$	251.8		$	242.1
Linked-quarter change — amount	$	(5.2	)	$	(5.2	)	$	18.6		$	9.8		$	4.9
Linked-quarter change — percent		-1.9	%		-1.9	%		7.4	%		4.0	%		2.1	%

⁽¹⁾ See Basis of Presentation for definition

As discussed in the sections that follow, the decline from the 2010 third quarter primarily reflected higher noninterest expense and lower noninterest income, partially offset by higher net interest income.

Net Interest Income, Net Interest Margin, and Average Balance Sheet

2010 Fourth Quarter versus 2010 Third Quarter

Compared with the 2010 third quarter, fully-taxable equivalent net interest income increased $6.4 million, or 2%. This reflected an annualized 15% increase in average earning assets as the fully-taxable equivalent net interest margin declined to 3.37% from 3.45%. The increase in average earning assets reflected a combination of activities including:

• $1.0 billion, or 10%, increase in average investment securities, reflecting the deployment of cash from deposit growth into short- and intermediate-term securities, and

• $0.6 billion, or 2%, increase in average total loans and leases.

The net interest margin declined 8 basis points, reflecting the impact of stronger deposit growth funding investment security purchases at a lower incremental spread.

5

Table 3 details the increase in average total loans and leases.

Table 3 — Loans and Leases — 4Q10 vs. 3Q10

	2010
	Fourth		Third		Change
(in billions)	Quarter		Quarter		Amount			%
Average Loans and Leases
Commercial and industrial	$	12.8	$	12.4	$	0.4			3	%
Commercial real estate		6.8		7.1		(0.3	)		(4	)
Total commercial		19.6		19.5		0.1			1
Automobile loans and leases		5.5		5.1		0.4			7
Home equity		7.7		7.6		0.1			2
Residential mortgage		4.4		4.4		0.0			1
Other consumer		0.6		0.7		(0.1	)		(12	)
Total consumer		18.2		17.7		0.5			3
Total loans and leases	$	37.8	$	37.2	$	0.6			2	%

Average total loans and leases increased $0.6 billion, or 2%, reflecting a $0.5 billion, or 3%, increase in total consumer loans, and a $0.1 billion, or 1%, increase in average total commercial loans.

• Average commercial and industrial (C&I) loans increased $0.4 billion, or 3%. Fourth quarter results were consistent with our belief that there are opportunities for growth in the C&I segment. Of the $0.4 billion increase, $0.2 billion represented an increase in automobile dealer floor plan loans resulting from increased inventory purchases, as well as growth in automobile dealer relationships. The remaining increase reflected a combination of growth in our asset based lending business, as well as traditional business lending. We continue to be pleased with the quality of customers we attracted. The economic environment continued to cause many of our existing customers to be appropriately focused on maintaining a lower leverage position as exemplified by a continued low 42% level of line-of-credit utilization. We consider this a positive as the financial condition of our borrowers is of primary concern to generating long-term returns. We continue to be focused on expanding our customer base within our markets and are seeing an increasing C&I pipeline.

• Average commercial real estate loans (CRE) declined $0.3 billion, or 4%, primarily as a result of our ongoing strategy to reduce our exposure to the commercial real estate market. The current quarter decline was consistent with the reduction in the third quarter and was primarily a result of continuing paydowns and charge-offs in the noncore CRE portfolio. It is important to note that the composition of the reduction is substantially more weighted toward paydowns in the current quarter compared to the prior quarter as a result of the workout strategies by our Special Assets Department. The portion of our CRE portfolio designated as core continued to perform as expected.

• Average total consumer loans increased $0.5 billion, or 3%, led by a $0.4 billion, or 7%, increase in average automobile loans and leases. Fourth quarter automobile loan production continued to reflect high credit quality metrics with an appropriate return. Our recent expansion into Eastern Pennsylvania and the five New England states began to have a positive impact on volume. We expect our growth in these markets to become more evident over time as we further develop our dealership base. Average home equity loans increased $0.1 billion, or 2%, in the quarter.

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Table 4 details changes within the various deposit categories.

Table 4 — Deposits — 4Q10 vs. 3Q10

	2010
	Fourth		Third		Change
(in billions)	Quarter		Quarter		Amount			%
Average Deposits
Demand deposits — noninterest bearing	$	7.2	$	6.8	$	0.4			6	%
Demand deposits — interest bearing		5.3		5.3		(0.0	)		(0	)
Money market deposits		13.2		12.3		0.8			7
Savings and other domestic deposits		4.6		4.6		0.0			0
Core certificates of deposit		8.6		8.9		(0.3	)		(3	)
Total core deposits		38.9		38.0		0.9			2
Other domestic deposits of $250,000 or more		0.7		0.7		0.0			7
Brokered deposits and negotiable CDs		1.6		1.5		0.1			5
Other deposits		0.4		0.5		(0.0	)		(2	)
Total deposits	$	41.7	$	40.6	$	1.1			3	%

Average total deposits increased $1.1 billion, or 3%, from the prior quarter reflecting:

• $0.9 billion, or 2%, growth in average total core deposits. The primary drivers of this growth were a 7% increase in average money market deposits, and 6% growth in average noninterest bearing demand deposits. Partially offsetting this growth was a 3% decline in average core certificates of deposit.

2010 Fourth Quarter versus 2009 Fourth Quarter

Fully-taxable equivalent net interest income increased $42.4 million, or 11%, from the year-ago quarter. This reflected the favorable impact of the significant increase in the net interest margin to 3.37% from 3.19%. This also reflected the benefit of a $2.4 billion, or 5%, increase in average total earning assets due to a $1.4 billion, or 15%, increase in average total investment securities, and a $0.7 billion, or 2%, increase in average total loans and leases.

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Table 5 details the $0.7 billion, or 2%, increase in average total loans and leases.

Table 5 — Loans and Leases — 4Q10 vs. 4Q09

	Fourth Quarter				Change
(in billions)	2010		2009		Amount			%
Average Loans and Leases
Commercial and industrial	$	12.8	$	12.6	$	0.2			2	%
Commercial real estate		6.8		8.5		(1.7	)		(20	)
Total commercial		19.6		21.0		(1.5	)		(7	)
Automobile loans and leases		5.5		3.3		2.2			66
Home equity		7.7		7.6		0.1			2
Residential mortgage		4.4		4.4		0.0			0
Other consumer		0.6		0.8		(0.2	)		(24	)
Total consumer		18.2		16.1		2.2			14
Total loans and leases	$	37.8	$	37.1	$	0.7			2	%

The increase in average total loans and leases reflected:

• $2.2 billion, or 66%, increase in average automobile loans and leases. In early 2009, we transferred automobile loans to a trust in a securitization transaction. With the adoption of ASC 810 — Consolidation, that trust was consolidated as of January 1, 2010. At December 31, 2010, these securitized loans had a remaining balance of $0.5 billion. Underlying growth in automobile loans continued to be strong, reflecting a significant increase in loan originations compared to the year-ago period. The growth has come while maintaining our commitment to excellent credit quality and an appropriate return.

• $0.1 billion, or 2%, increase in average home equity loans, reflecting slightly higher line utilization and slower runoff experience, partially offset by lower origination volume.

• $0.2 billion, or 2%, increase in average C&I loans, reflecting a combination of factors. This included a positive benefit of (1) $0.6 billion in reclassifications of certain CRE loans, primarily owner-occupied properties, to C&I loans at the end of 2009, (2) $0.3 billion of growth in automobile dealer floorplan loans, and (3) $0.1 billion of growth in asset based lending. These benefits were partially offset by a $0.5 billion reduction in traditional business loans, primarily in the first quarter of 2010, and a $0.3 billion reclassification in the 2010 first quarter of variable rate demand notes to municipal securities. We continue to believe there are opportunities for C&I growth in the coming quarters.

Partially offset by:

• $1.7 billion, or 20%, decrease in average CRE loans reflecting the impact of 2009 reclassifications of certain CRE loans, primarily representing owner-occupied properties, to C&I loans, as well as our ongoing commitment to lower our overall CRE exposure. We continue to effectively execute our plan to reduce the CRE exposure while maintaining a commitment to our core CRE borrowers. The decrease in average balances is associated with the noncore portfolio, as we have maintained relatively consistent balances with good performance in the core portfolio.

The $1.4 billion, or 15%, increase in average total investment securities reflected the deployment of cash from core deposit growth.

8

Table 6 details the $1.5 billion, or 4%, increase in average total deposits.

Table 6 — Deposits — 4Q10 vs. 4Q09

	Fourth Quarter				Change
(in billions)	2010		2009		Amount			%
Average Deposits
Demand deposits — noninterest bearing	$	7.2	$	6.5	$	0.7			11	%
Demand deposits — interest bearing		5.3		5.5		(0.2	)		(3	)
Money market deposits		13.2		9.3		3.9			42
Savings and other domestic deposits		4.6		4.7		(0.0	)		(1	)
Core certificates of deposit		8.6		10.9		(2.2	)		(20	)
Total core deposits		38.9		36.8		2.2			6
Other domestic deposits of $250,000 or more		0.7		0.7		0.1			10
Brokered deposits and negotiable CDs		1.6		2.4		(0.8	)		(33	)
Other deposits		0.4		0.4		0.0			5
Total deposits	$	41.7	$	40.2	$	1.5			4	%

The increase in average total deposits from the year-ago quarter reflected:

• $2.2 billion, or 6%, growth in average total core deposits. The drivers of this change were a $3.9 billion, or 42%, growth in average money market deposits, and a $0.7 billion, or 11%, growth in average noninterest bearing demand deposits. These increases were partially offset by a $2.2 billion, or 20%, decline in average core certificates of deposit and a $0.2 billion, or 3%, decrease in average interest bearing demand deposits.

Partially offset by:

• $0.8 billion, or 33%, decline in brokered deposits and negotiable CDs, primarily reflecting a reduction of noncore funding sources.

Provision for Credit Losses

The provision for credit losses in the 2010 fourth quarter was $87.0 million, down $32.2 million, or 27%, from the prior quarter and down $807.0 million, or 90%, from the year-ago quarter. Reflecting the resolution of problem credits for which reserves had been previously established, the current quarter’s provision for credit losses was $85.3 million less than total net charge-offs (see Credit Quality discussion).

Noninterest Income

2010 Fourth Quarter versus 2010 Third Quarter

Noninterest income decreased $2.9 million, or 1%, from the 2010 third quarter.

9

Table 7 — Noninterest Income — 4Q10 vs. 3Q10

	2010
	Fourth			Third			Change
(in millions)	Quarter			Quarter			Amount			%
Noninterest Income
Service charges on deposit accounts	$	55.8		$	65.9		$	(10.1	)		(15	)%
Mortgage banking income		53.2			52.0			1.1			2
Trust services		29.4			27.0			2.4			9
Electronic banking income		28.9			28.1			0.8			3
Insurance income		19.7			19.8			(0.1	)		(1	)
Brokerage income		17.0			16.6			0.4			2
Bank owned life insurance income		16.1			14.1			2.0			14
Automobile operating lease income		10.5			11.4			(0.9	)		(8	)
Securities (losses) gains		(0.1	)		(0.3	)		0.2			65
Other income		33.8			32.6			1.3			4
Total noninterest income	$	264.2		$	267.1		$	(2.9	)		(1	)%

The decrease in total noninterest income reflected:

• $10.1 million, or 15%, decrease in service charges on deposit accounts. This decline represented a decrease in personal NSF/OD service charges and reflected a combination of factors. These included the impact from the 2010 third quarter implementation of changes to Regulation E and introduction of our “Fair Play” banking philosophy, as well as the continued underlying decline in activity as customers better manage their account balances. As part of our “Fair Play” banking philosophy, in the third quarter we voluntary reduced certain NSF/OD fees and implemented our 24-Hour Grace™ overdrafts policy. The goal of our “Fair Play” banking philosophy is to introduce more customer friendly fee structures with the objective of accelerating the acquisition and retention of new households. Over the second half of 2010, the reduction in service charge income related to our 24- Hour Grace™ initiative was consistent with our expectations. Importantly, last year checking households grew 6.5%, which was 1%, more than expected. However, overall service charge income over the second half of the year was slightly lower than our 2010 mid-year expectations, as customers continued to better manage their account balances.

Partially offset by:

• $2.4 million, or 9%, growth in trust services income, reflecting the increase in asset market values, and growth in new business and seasonal renewal fees.

• $2.0 million, or 14%, increase in bank owned life insurance income.

2010 Fourth Quarter versus 2009 Fourth Quarter

Noninterest income increased $19.7 million, or 8%, from the year-ago quarter.

10

Table 8 — Noninterest Income — 4Q10 vs. 4Q09

	Fourth Quarter						Change
(in millions)	2010			2009			Amount			%
Noninterest Income
Service charges on deposit accounts	$	55.8		$	76.8		$	(20.9	)		(27	)%
Mortgage banking income		53.2			24.6			28.6			116
Trust services		29.4			27.3			2.1			8
Electronic banking income		28.9			25.2			3.7			15
Insurance income		19.7			16.1			3.6			22
Brokerage income		17.0			16.0			0.9			6
Bank owned life insurance income		16.1			14.1			2.1			15
Automobile operating lease income		10.5			12.7			(2.2	)		(17	)
Securities (losses) gains		(0.1	)		(2.6	)		2.5			96
Other income		33.8			34.4			(0.6	)		(2	)
Total noninterest income	$	264.2		$	244.5		$	19.7			8	%

The increase in total noninterest income reflected:

• $28.6 million, or 116%, increase in mortgage banking income. This reflected a $31.8 million increase in origination and secondary marketing income, as originations increased 62% from the year-ago quarter, partially offset by a $4.0 million decrease in net servicing revenues.

• $3.7 million, or 15%, increase in electronic banking income, reflecting an increase in debit card transaction volume.

• $3.6 million, or 22%, increase in insurance income, primarily reflecting an increase in title insurance income due to higher mortgage refinance activity.

• $2.5 million benefit from lower securities losses in the current quarter compared with the year-ago quarter.

• $2.1 million, or 15%, increase in insurance benefits associated with bank owned life insurance.

• $2.1 million, or 8%, increase in trust services income, with half of the increase due to increases in asset market values, and the remainder reflecting growth in new business.

Partially offset by:

• $20.9 million, or 27%, decline in service charges on deposit accounts, reflecting lower personal service charges due to a combination of factors including the implementation of the amendment to Regulation E, our “Fair Play” banking philosophy, and lower underlying activity levels.

• $2.2 million, or 17%, decline automobile operating lease income reflecting the impact of a declining portfolio having exited that business in 2008.

11

Noninterest Expense

2010 Fourth Quarter versus 2010 Third Quarter

Noninterest expense increased $7.3 million, or 2%, from the 2010 third quarter.

Table 9 — Noninterest Expense — 4Q10 vs. 3Q10

	2010
	Fourth		Third		Change
(in millions)	Quarter		Quarter		Amount			%
Noninterest Expense
Personnel costs	$	212.2	$	208.3	$	3.9			2	%
Outside data processing and other services		40.9		38.6		2.4			6
Net occupancy		26.7		26.7		(0.0	)		(0	)
Deposit and other insurance expense		23.3		23.4		(0.1	)		(0	)
Professional services		21.0		20.7		0.3			2
Equipment		22.1		21.7		0.4			2
Marketing		16.2		20.9		(4.8	)		(23	)
Amortization of intangibles		15.0		15.1		(0.1	)		(1	)
OREO and foreclosure expense		10.5		12.0		(1.5	)		(13	)
Automobile operating lease expense		8.1		9.2		(1.0	)		(11	)
Other expense		38.5		30.8		7.8			25
Total noninterest expense	$	434.6	$	427.3	$	7.3			2	%
(in thousands)
Number of employees (full-time equivalent)		11.3		11.3		0.1			1	%

The increase in noninterest expense reflected:

• $7.8 million, or 25%, increase in other expense, reflecting $4.1 million associated with increases in repurchase reserves related to representations and warranties losses made on mortgage loans sold and a $2.4 million increase in fraud losses.

• $3.9 million, or 2%, increase in personnel costs, reflecting a combination of factors including higher salaries due to a 1% increase in full-time equivalent staff in support of strategic initiatives and higher sales commissions.

• $2.4 million, or 6%, increase in outside data processing and other services, reflecting higher outside programming costs.

Partially offset by:

• $4.8 million, or 23%, decrease in marketing expense, reflecting a reduction in branding and advertising activities to planned levels following a third quarter rollout emphasis.

12

2010 Fourth Quarter versus 2009 Fourth Quarter

Noninterest expense increased $112.0 million, or 35%, from the year-ago quarter.

Table 10 — Noninterest Expense — 4Q10 vs. 4Q09

	Fourth Quarter					Change
(in millions)	2010		2009			Amount			%
Noninterest Expense
Personnel costs	$	212.2	$	180.7		$	31.5			17	%
Outside data processing and other services		40.9		36.8			4.1			11
Net occupancy		26.7		26.3			0.4			2
Deposit and other insurance expense		23.3		24.4			(1.1	)		(5	)
Professional services		21.0		25.1			(4.1	)		(16	)
Equipment		22.1		20.5			1.6			8
Marketing		16.2		9.1			7.1			78
Amortization of intangibles		15.0		17.1			(2.0	)		(12	)
OREO and foreclosure expense		10.5		18.5			(8.0	)		(43	)
Automobile operating lease expense		8.1		10.4			(2.3	)		(22	)
Gain on early extinguishment of debt		—		(73.6	)		73.6			(100	)
Other expense		38.5		27.3			11.2			41
Total noninterest expense	$	434.6	$	322.6		$	112.0			35	%
(in thousands)
Number of employees (full-time equivalent)		11.3		10.3			1.1			10	%

The increase reflected:

• $73.6 million gain on early extinguishment of debt that reduced expenses in the year-ago quarter.

• $31.5 million, or 17%, increase in personnel costs, primarily reflecting a 10% increase in full-time equivalent staff in support of strategic initiatives, as well as higher commissions and other incentive expenses, and the reinstatement of our 401(k) plan matching contribution.

• $11.2 million, or 41%, increase in other expense, reflecting $5.9 million associated with increases in repurchase losses related to representations and warranties made on mortgage loans sold, as well as increased travel and miscellaneous fees.

• $7.1 million, or 78%, increase in marketing expense, reflecting increases in branding and product advertising activities in support of strategic initiatives.

• $4.1 million, or 11%, increase in outside data processing and other services, reflecting higher outside programming and other costs associated with the implementation of strategic initiatives, partially offset by lower Franklin-related servicing costs.

Partially offset by:

• $8.0 million, or 43%, decline in OREO and foreclosure expense.

• $4.1 million, or 16%, decrease in professional services, reflecting lower legal expenses.

• $2.3 million, or 22%, decline in automobile operating lease expense as that portfolio continued to run-off.

• $2.0 million, or 12%, decrease in the amortization of intangibles expense.

13

Income Taxes

The provision for income taxes in the 2010 fourth quarter was $35.0 million. For the full-year 2010, the provision for income taxes was $40.0 million. The effective tax rates for the 2010 fourth quarter and full-year 2010 were 22.2% and 11.3%, respectively. At December 31, 2010, we had a deferred tax asset of $538.3 million. Based on both positive and negative evidence and our level of forecasted future taxable income, there was no impairment of the deferred tax asset at December 31, 2010. The total disallowed deferred tax asset for regulatory capital purposes increased to $161.3 million at December 31, 2010, from $112.9 million at September 30, 2010.

Credit Quality Performance Discussion

Credit quality performance in the 2010 fourth quarter continued to show improvement. Total net charge-offs were down from the third quarter. The composition of the losses also changed, as a significant declining trend in the CRE portfolio continued to develop. The increase in the residential mortgage net charge-offs was partially driven by charge-offs associated with loans sold during the quarter. The slight increase in auto loan and lease net charge-offs losses was well within our expectations given the seasonality impact and is not an indication of any portfolio weakness.

Other key credit quality metrics also showed improvement, including a 24% decline in nonperforming assets (NPAs) and a 15% decline in the level of criticized commercial loans. These declines reflected the positive impact of significant levels of restructures, upgrades, and payment activity. Notably, the level of new additions was more comparable to that in the first half of 2010 than to the elevated third quarter level. The economic environment remains challenging. Yet, reflecting the benefit of our focused credit actions, we continue to expect declines in total NPAs and criticized loans going forward.

We continue to see stable to improving delinquency trends across the entire loan and lease portfolio, with a significant opportunity for further improvement in the residential and home equity portfolios. Automobile loan delinquency rates continued to decline. Given the significant increase in new automobile origination volume, we use a lagged delinquency measure to ensure that the underlying portfolio performance is consistent with our expectations. Based on the lagged analysis and the origination quality, we remain very comfortable with the ongoing performance of our automobile loan portfolio.

This quarter’s net charge-offs were primarily related to reserves established in prior periods. Our allowance for credit losses (ACL) declined $85.3 million to $1,291.1 million, or 3.39% of period-end total loans and leases, from $1,376.4 million, or 3.67%, at September 30, 2010. Importantly, our ACL as a percent of period-end NALs increased to 166% from 140%, along with improved coverage ratios associated with NPAs and criticized assets. These improved coverage ratios indicate a strengthening of our reserves relative to troubled assets from the end of the prior quarter.

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Net Charge-Offs (NCOs)

Table 11 — Net Charge-offs

	2010												2009
	Fourth			Third			Second			First			Fourth
(in millions)	Quarter			Quarter			Quarter			Quarter			Quarter
Net Charge-offs
Commercial and industrial	$	59.1		$	62.2		$	58.1		$	75.4		$	109.8
Commercial real estate		44.9			63.7			81.7			85.3			258.1
Total commercial		104.0			125.9			139.9			160.7			367.9
Automobile loans and leases		7.0			5.6			5.4			8.5			12.9
Home equity		29.2			27.8			44.5			37.9			35.8
Residential mortgage		26.8			19.0			82.8			24.3			17.8
Other consumer		5.3			6.3			6.6			7.0			10.3
Total consumer		68.3			58.6			139.4			77.7			76.8
Total net charge-offs	$	172.3		$	184.5		$	279.2		$	238.5		$	444.7
Net Charge-offs — annualized percentages
Commercial and industrial		1.85	%		2.01	%		1.90	%		2.45	%		3.49	%
Commercial real estate		2.64			3.60			4.44			4.44			12.21
Total commercial		2.13			2.59			2.85			3.22			7.00
Automobile loans and leases		0.51			0.43			0.47			0.80			1.55
Home equity		1.51			1.47			2.36			2.01			1.89
Residential mortgage		2.42			1.73			7.19			2.17			1.61
Other consumer		3.66			3.83			3.81			3.87			5.47
Total consumer		1.50			1.32			3.19			1.83			1.91
Total net charge-offs		1.82	%		1.98	%		3.01	%		2.58	%		4.80	%
MEMO: Franklin-Related Net Charge-offs
Commercial and industrial	$	(0.1	)	$	(4.5	)	$	(0.2	)	$	(0.3	)	$	0.1
Home equity		—			1.2			15.9			3.7			—
Residential mortgage		(4.4	)		3.4			64.2			8.1			1.1
Total net charge-offs	$	(4.6	)	$	0.0		$	80.0		$	11.5		$	1.2

Total net charge-offs for the 2010 fourth quarter were $172.3 million, or an annualized 1.82% of average total loans and leases. This was down $12.3 million from $184.5 million, or an annualized 1.98%, in the 2010 third quarter.

Total C&I net charge-offs for the 2010 fourth quarter were $59.1 million, or an annualized 1.85%, down 5% from $62.2 million, or an annualized 2.01% of related loans, in the 2010 third quarter. The relative stabilization in the second half of 2010 is a positive trend for the portfolio going forward.

Current quarter CRE net charge-offs were $44.9 million, down 30% from $63.7 million in the prior quarter. Annualized net charge-offs in the current quarter were 2.64%, down from 3.60% in the prior quarter. The decline was consistent with the improving asset quality metrics. The level of CRE NALs and criticized loans ended the quarter at their lowest level since 2008, and early stage delinquency continued to improve. These trends give us confidence in our outlook for improved results going forward. The fourth quarter net charge-offs continued to be centered in retail projects, with no significant charge-offs in the multi-family portfolio. The retail property portfolio remains the most susceptible to a continued decline in market conditions. We believe we are adequately reserved to support effective ongoing management of this portfolio segment. While the office portfolio has experienced stress, we remain comfortable with this exposure.

15

Total consumer net charge-offs in the current quarter were $68.3 million, or an annualized 1.50%, up from $58.6 million, or an annualized 1.32%, in the third quarter.

Automobile loan and lease net charge-offs were $7.0 million, or an annualized 0.51% of related average balances, up 26% from $5.6 million, or an annualized 0.43%, in the third quarter. The increase from the prior quarter primarily reflected seasonal factors. We continued our strategy of originating high quality automobile loans. During the fourth quarter, we originated $795 million of loans with an average FICO score of 764 with a continued emphasis on lower loan-to-value ratios. The level and quality of new production in 2010 position us well for continued future performance.

Home equity net charge-offs were $29.2 million, or an annualized 1.51% of related average balances, up $1.3 million from $27.8 million, or an annualized 1.47%, in the 2010 third quarter. We continue to manage the default rate through focused delinquency monitoring as virtually all defaults for home equity loans in a second lien position incur substantial losses given the lack of equity. Our strategies focus on loss mitigation activity via early intervention and restructured terms, as we continue to believe that our more proactive loss mitigation strategies are in the best interest of both the company and our customers. While there has been a clear increase in losses given the market conditions, our performance has remained within our expectations.

Residential mortgage net charge-offs in the current quarter were $26.8 million, or an annualized 2.42% of related loans, up $7.8 million from $19.0 million, or an annualized 1.73%, in the prior quarter. The fourth quarter results were impacted by $16.4 million of charge-offs associated with loans sold during the quarter. The sale represented a continuation of our strategy to seek strategic opportunities to reduce the level of troubled loans in our portfolio. In this case, we were able to close a transaction which reduced NALs, at a loss close to that expected were these loans to go through foreclosure and ultimate sale as OREO properties. In addition, we have avoided much of the foreclosure expense and other resources associated with workout activity. Without the sale, the quarter’s results would have been lower than in the third quarter, as the economic environment and significantly reduced equity position continued to impact the industry. We did see continued positive trends in the delinquency mix, and the percent of the portfolio falling into the low score ranges on our updated score process continued to decline. We are very aware of the impact of the government sponsored entities (GSEs) Fannie Mae and Freddie Mac, from both a repurchase risk standpoint and the potential for a substantial increase in properties on the market in the coming months. From a market condition perspective, we are appropriately considering the impact of a large increase in the number of properties for sale over the coming months by adjusting our remarketing and sales strategies.

16

Nonaccrual Loans (NALs) and Nonperforming Assets (NPAs)

Table 12 — Nonaccrual Loans and Nonperforming Assets

	2010												2009
(in millions)	Dec. 31			Sep. 30			Jun. 30			Mar. 31			Dec. 31
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	346.7		$	398.4		$	429.6		$	511.6		$	578.4
Commercial real estate		363.7			478.8			663.1			826.8			935.8
Residential mortgage		45.0			83.0			86.5			373.0			362.6
Home equity		22.5			21.7			22.2			54.8			40.1
Total nonaccrual loans and leases (NALs)		777.9			981.8			1,201.3			1,766.1			1,917.0
Other real estate, net:
Residential		31.6			65.8			71.9			68.3			71.4
Commercial		35.2			57.3			67.2			84.0			68.7
Total other real estate, net		66.8			123.1			139.1			152.3			140.1
Impaired loans held for sale (1)		—			—			242.2			—			1.0
Total nonperforming assets (NPAs)	$	844.8		$	1,104.9		$	1,582.7		$	1,918.4		$	2,058.1
Nonperforming Frankin assets
Residential mortgage	$	—		$	—		$	—		$	298.0		$	299.7
Home equity		—			—			—			31.1			15.0
OREO		9.5			15.3			24.5			24.4			23.8
Impaired loans held for sale (1)		—			—			242.2			—			—
Total nonperforming Franklin assets	$	9.5		$	15.3		$	266.7		$	353.5		$	338.5
NAL ratio (2)		2.04	%		2.62	%		3.25	%		4.78	%		5.21	%
NPA ratio (3)		2.21			2.94			4.24			5.17			5.57

(1)	June 30, 2010, figure represents NALs associated with the transfer of Franklin-related residential mortgage and home equity loans to loans held for sale. December 31, 2009 figure represents impaired loans obtained in the Sky Financial acquisition. Held for sale loans are carried at the lower of cost or fair value less costs to sell.
(2)	Total NALs as a % of total loans and leases
(3)	Total NPAs as a % of sum of loans and leases, impaired loans held for sale, and net other real estate

Total nonaccrual loans and leases (NALs) were $777.9 million at December 31, 2010, and represented 2.04% of total loans and leases. This was down $203.8 million, or 21%, from $981.8 million, or 2.62% of total loans and leases, at September 30, 2010.

CRE NALs decreased $115.1 million, or 24%, from September 30, 2010. This primarily reflected problem credit resolution activity and charge-offs. This substantial decline is a direct result of our commitment to the ongoing proactive management of these credits by our Special Assets Department. Also key to this improvement was the lower level of inflows. The level of inflows, or migration, is an important indicator of the future trend for the portfolio.

C&I NALs decreased $51.6 million, or 13%, from the end of prior quarter. This reflected both charge-off activity and problem credit resolutions, including pay-offs, and was associated with loans throughout our footprint with no specific geographic concentration. From an industry perspective, some improvement in the manufacturing-related segment accounted for a significant portion of the decrease.

Nonperforming assets (NPAs), which include NALs, were $844.8 million at December 31, 2010, and represented 2.21% of related assets. This was down $260.1 million, or 24%, from $1,104.9 million, or 2.94%, of related assets at the end of the prior quarter.

17

Table 13 — 90 Days Past Due and Accruing Restructured Loans

	2010												2009
(in millions)	Dec. 31			Sep. 30			Jun. 30			Mar. 31			Dec. 31
Accruing loans and leases past due 90 days or more:
Total excluding loans guaranteed by the U.S. Government	$	87.7		$	95.4		$	83.4		$	113.2		$	145.7
Loans guaranteed by the U.S. Government		98.3			94.2			95.4			96.8			101.6
Total loans and leases	$	185.9		$	189.6		$	178.8		$	210.0		$	247.3
Ratios (1)
Excluding loans guaranteed by the U.S. government		0.23	%		0.25	%		0.23	%		0.31	%		0.40	%
Guaranteed by U.S. government		0.26			0.26			0.26			0.26			0.28
Including loans guaranteed by the U.S. government		0.49			0.51			0.49			0.57			0.68
Accruing restructured loans (ARLs):
Commercial	$	171.8		$	158.0		$	141.4		$	117.7		$	157.0
Residential mortgages		313.0			287.5			269.6			242.9			219.6
Other		76.6			73.2			65.1			62.1			52.9
Total accruing restructured loans	$	561.4		$	518.7		$	476.0		$	422.7		$	429.6

⁽¹⁾ Percent of related loans and leases

Total accruing loans and leases over 90 days past due, excluding loans guaranteed by the U.S. Government, were $87.7 million at December 31, 2010, down $7.7 million, or 8%, from the end of the prior quarter, but down $58.0 million, or 40%, from the end of the year-ago period. On this same basis, the over 90-day delinquency ratio was 0.23% at December 31, 2010, down from 0.25% at the end of the 2010 third quarter, and down 17 basis points from a year earlier. For total consumer loans, and on this same basis, the over 90-day delinquency ratio was 0.49% at December 31, 2010, down slightly from the end of the prior quarter.

Allowances for Credit Losses (ACL)

We maintain two reserves, both of which are available to absorb inherent credit losses: the allowance for loan and lease losses (ALLL) and the allowance for unfunded loan commitments and letters of credit (AULC). When summed together, these reserves constitute the total ACL.

Table 14 — Allowances for Credit Losses (ACL)

	2010												2009
(in millions)	Dec. 31,			Sep. 30			Jun. 30			Mar. 31			Dec. 31,
Allowance for loan and lease losses (ALLL)	$	1,249.0		$	1,336.4		$	1,402.2		$	1,478.0		$	1,482.5
Allowance for unfunded loan commitments and letters of credit		42.1			40.1			39.7			49.9			48.9
Allowance for credit losses (ACL)	$	1,291.1		$	1,376.4		$	1,441.8		$	1,527.9		$	1,531.4
ALLL as a % of:
Total loans and leases		3.28	%		3.56	%		3.79	%		4.00	%		4.03	%
Nonaccrual loans and leases (NALs)		161			136			117			84			77
Nonperforming assets (NPAs)		148			121			89			77			72
ACL as a % of:
Total loans and leases		3.39	%		3.67	%		3.90	%		4.14	%		4.16	%
Nonaccrual loans and leases (NALs)		166			140			120			87			80
Nonperforming assets (NPAs)		153			125			91			80			74

18

At December 31, 2010, the ALLL was $1,249.0 million, down $87.3 million, or 7%, from $1,336.4 million at the end of the prior quarter. Expressed as a percent of period-end loans and leases, the ALLL ratio at December 31, 2010, was 3.28%, down from 3.56% at September 30, 2010. The ALLL as a percent of NALs was 161% at December 31, 2010, up from 136% at September 30, 2010.

At December 31, 2010, the AULC was $42.1 million, up $2.1 million, or 5%, from the end of the prior quarter.

On a combined basis, the ACL as a percent of total loans and leases at December 31, 2010, was 3.39%, down from 3.67% at September 30, 2010. This reduction was centered in the CRE portfolio as a result of the reduction in the level of problem credits detailed above. The ACL as a percent of NALs was 166% at December 31, 2010, up from 140% at September 30, 2010, indicating additional strength in the reserve level relative to the level of problem credits.

Capital

Table 15 — Capital Ratios

During the fourth quarter we issued $920.0 million of common stock and $300.0 million of subordinated debt. The net proceeds of these issuances, along with existing cash, were used to repurchase all $1.4 billion of the Series B Fixed Rate Cumulative Perpetual Preferred Stock that we issued to the U.S. Department of the Treasury under its Troubled Asset Relief Program’s (TARP) Capital Purchase Program.

As previously announced on January 19, 2011, we repurchased the warrant we had issued to the U.S. Department of the Treasury as part of the TARP Capital Purchase Program for $49.1 million. The warrant had entitled the U.S. Department of the Treasury to purchase 23.6 million common shares.

	2010												2009
(in millions)	Dec. 31,			Sep. 30			Jun. 30			Mar. 31			Dec. 31,
Tangible common equity / tangible assets ratio		7.56	%		6.20	%		6.12	%		5.96	%		5.92	%
Tier 1 common risk-based capital ratio		9.25	%		7.39	%		7.06	%		6.55	%		6.76	%
Regulatory Tier 1 risk-based capital ratio		11.50	%		12.82	%		12.51	%		12.00	%		12.15	%
Excess over 6.0% (1)	$	2,402		$	2,916		$	2,766		$	2,545		$	2,633
Regulatory Total risk-based capital ratio		14.39	%		15.08	%		14.79	%		14.31	%		14.55	%
Excess over 10.0% (1)	$	1,917		$	2,172		$	2,035		$	1,828		$	1,948
Total risk-w eighted assets	$	43,678		$	42,759		$	42,486		$	42,418		$	42,816

(1) “Well-capitalized” regulatory threshold

The tangible common equity to asset ratio at December 31, 2010, was 7.56%, up from 6.20% at the end of the prior quarter. The net impact of the common equity issuance of $883.9 million positively impacted the tangible common equity ratio by 168 basis points. This benefit was partially offset by a negative 32 basis point impact related to $169.1 million reduction in other comprehensive income, primarily reflecting the impact of changing interest rates on the market value of investment securities, derivatives, and pension obligations.

19

Our Tier 1 common risk-based capital ratio at quarter end was 9.25%, up from 7.39% at the end of the prior quarter.

At December 31, 2010, our regulatory Tier 1 and Total risk-based capital ratios were 11.50% and 14.39%, respectively, down from 12.82% and 15.08%, respectively, at September 30, 2010. The decrease in our Tier 1 and Total risk-based capital ratios from September 30, 2010, primarily reflected the impact of the repurchase of $1.4 billion in TARP capital. On an absolute basis, our Tier 1 and Total risk-based capital ratios at December 31, 2010, exceeded the regulatory “well capitalized” thresholds by $2.4 billion and $1.9 billion, respectively. The “well capitalized” level is the highest regulatory capital designation.

2011 EXPECTATIONS

Borrower and consumer confidence remains a major factor impacting growth opportunities for 2011. We continue to believe that the economy will remain relatively stable throughout the coming year, with the potential for improvement in the latter half. Revenue headwinds as a result of regulatory and legislative actions, combined with higher interest rates as we enter 2011 that we expect will reduce mortgage banking revenue, and continued investments in growing the business, will represent challenges to earnings growth.

Reflecting these factors, pre-tax, pre-provision income levels are expected to remain in line with 2010 second half performance. Nevertheless, net income growth from current levels is anticipated throughout the year. This will primarily reflect ongoing reductions in credit costs. We expect the absolute levels of net charge-offs, NPAs, and criticized loans will continue to decline, resulting in lower levels of provision expense. Given the significant improvements in 2010, coupled with our expectation for continued improvement, our return to more normalized levels of credit costs could occur earlier than previously expected.

The net interest margin is expected to be flat to up slightly from the 2010 fourth quarter level. We anticipate continued benefit from lower deposit pricing. In addition, the absolute growth in loans compared with deposits is anticipated to be more comparable, thus reducing the absolute growth in lower yield investment securities.

The automobile loan portfolio is expected to continue its strong growth, and we anticipate continued growth in C&I loans. CRE loans are expected to continue to decline, but at a slower rate. Home equity and residential mortgages are likely to show only modest growth.

Core deposits are expected to show continued growth. Further, we expect the shift toward lower-cost demand deposit accounts will continue.

Fee income, compared with the 2010 fourth quarter, will be negatively impacted by lower interchange fees and a decline in mortgage banking revenues due to continued weak market conditions. With regard to interchange fees, if enacted as recently outlined, the Federal Reserve’s proposed interchange fee structure will significantly lower interchange revenue. Other fee categories are expected to grow, reflecting the impact of our cross-sell initiatives throughout the company, as well as the positive impact from strategic initiatives. Over time, we anticipate more than offsetting revenue challenges with revenue we expect to generate by accelerating customer growth and cross-sell results. Expense levels early in the year should be up modestly from 2010 fourth quarter performance, with increases later in the year due to continued investments to grow the business.

20

Conference Call / Webcast Information

Huntington’s senior management will host an earnings conference call on Thursday, January 20, 2011, at 10:00 a.m. (Eastern Time). The call may be accessed via a live Internet webcast at www.huntington-ir.com or through a dial-in telephone number at (800) 267-7495; conference ID 33285653. Slides will be available at www.huntington-ir.com about an hour prior to the call. A replay of the webcast will be archived in the Investor Relations section of Huntington’s web site www.huntington.com. A telephone replay will be available two hours after the completion of the call through January 31, 2011 at (800) 642-1687; conference ID 33285653.

Forward-looking Statement

This press release contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: (1) worsening of credit quality performance due to a number of factors such as the underlying value of the collateral could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected; (2) changes in economic conditions; (3) movements in interest rates; (4) competitive pressures on product pricing and services; (5) success, impact, and timing of our business strategies, including market acceptance of any new products or services introduced to implement our ‘Fair Play’ banking philosophy; (6) changes in accounting policies and principles and the accuracy of our assumptions and estimates used to prepare our financial statements; (7) extended disruption of vital infrastructure; and (8) the nature, extent, and timing of governmental actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as future regulations which will be adopted by the relevant regulatory agencies, including the newly created Consumer Financial Protection Bureau (CAP), to implement the Act’s provisions. Additional factors that could cause results to differ materially from those described above can be found in Huntington’s 2009 Annual Report on Form 10-K, and documents subsequently filed by Huntington with the Securities and Exchange Commission. All forward-looking statements included in this 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-GAP Financial Measures

This earnings press release contains GAP 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 this earnings release, the Quarterly Financial Review supplement to this release, the 2010 fourth quarter earnings conference call slides, or the Form 8-K related to this release, which can be found on Huntington’s website at huntington-ir.com.

Pre-Tax, Pre-Provision Income

One non-GAAP performance metric that Management believes is useful in analyzing underlying performance trends is pre-tax, pre-provision income. This is the level of earnings adjusted to exclude the impact of:

• provision expense, which is excluded because its absolute level is elevated and volatile in times of economic stress;

• investment securities gains/losses, which are excluded because in times of economic stress securities market valuations may also become particularly volatile;

• amortization of intangibles expense, which is excluded because return on tangible common equity is a key metric used by Management to gauge performance trends; and

• certain items identified by Management (see Significant Items below) which Management believes may distort the company’s underlying performance trends.

21

Significant Items

From time to time, revenue, expenses, or taxes are impacted by items judged by Management to be outside of ordinary banking activities and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by Management at that time to be infrequent or short-term in nature. We refer to such items as “Significant Items”. Most often, these Significant Items result from factors originating outside the company — e.g., regulatory actions/assessments, windfall gains, changes in accounting principles, one-time tax assessments/refunds, etc. In other cases they may result from Management decisions associated with significant corporate actions out of the ordinary course of business — e.g., merger/restructuring charges, recapitalization actions, goodwill impairment, etc.

Even though certain revenue and expense items are naturally subject to more volatility than others due to changes in market and economic environment conditions, as a general rule volatility alone does not define a Significant Item. For example, changes in the provision for credit losses, gains/losses from investment activities, asset valuation writedowns, etc., reflect ordinary banking activities and are, therefore, typically excluded from consideration as a Significant Item.

Management believes the disclosure of “Significant Items” in current and prior period results aids analysts/investors in better understanding corporate performance and trends so that they can ascertain which of such items, if any, they may wish to include/exclude from their analysis of the company’s performance; i.e., within the context of determining how that performance differed from their expectations, as well as how, if at all, to adjust their estimates of future performance accordingly. To this end, Management has adopted a practice of listing “Significant Items” in its external disclosure documents (e.g., earnings press releases, investor presentations, Forms 10-Q and 10-K).

“Significant Items” for any particular period are not intended to be a complete list of items that may materially impact current or future period performance. A number of items could materially impact these periods, including those described in Huntington’s 2009 Annual Report on Form 10-K and other factors described from time to time in Huntington’s other filings with the Securities and Exchange Commission.

Annualized data

Certain returns, yields, performance ratios, or quarterly growth rates are presented on an “annualized” basis. 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 and deposit growth rates, as well as net charge-off percentages, 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 earning 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 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 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 disclosed separately, with this then being the amount used to calculate the earnings per share equivalent.

About Huntington

Huntington Bancshares Incorporated is a $54 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has been providing a full range of financial services for 144 years. Huntington offers checking, loans, savings, insurance and investment services. It has 620 branches and also offers retail and commercial financial services online at huntington.com; through its telephone bank; and through its network of over 1,350 ATMs. Huntington’s Auto Finance and Dealer Services group offers automobile loans to consumers and commercial loans to automobile dealers within our six-state banking franchise area, as well as selected New England states.

###

22

HUNTINGTON BANCSHARES INCORPORATED
Quarterly Key Statistics⁽¹⁾
(Unaudited)

	2010						2009			Percent Changes vs.
(dollar amounts in thousands, except per share amounts)	Fourth			Third			Fourth			3Q10			4Q09
Net interest income	$	415,294		$	409,962		$	374,064			1	%		11	%
Provision for credit losses		86,973			119,160			893,991			(27	)		(90	)
Noninterest income		264,220			267,143			244,546			(1	)		8
Noninterest expense		434,593			427,309			322,596			2			35
Income (loss) before income taxes		157,948			130,636			(597,977	)		21			N.R.
Provision (benefit) for income taxes		35,048			29,690			(228,290	)		18			N.R.
Net Income (loss)	$	122,900		$	100,946		$	(369,687	)		22	%		N.R.
Dividends on preferred shares		83,754			29,495			29,289			184			186
Net income (loss) applicable to common shares	$	39,146		$	71,451		$	(398,977	)		(45	)%		N.R.
Net income (loss) per common share — diluted	$	0.05		$	0.10		$	(0.56	)		(50)	%		N.R.
Cash dividends declared per common share		0.01			0.01			0.01			—			—
Book value per common share at end of period		5.35			5.39			5.10			(1	)		5
Tangible book value per common share at end of period		4.66			4.55			4.21			2			11
Average common shares — basic		757,924			716,911			715,336			6			6
Average common shares — diluted(2)		760,582			719,567			715,336			6			6
Return on average assets		0.90	%		0.76	%		(2.80	)%
Return on average common shareholders’ equity		3.8			7.4			(39.1	)
Return on average common tangible shareholders’ equity(3)		5.6			10.0			(45.1	)
Net interest margin (4)		3.37			3.45			3.19
Efficiency ratio(5)		61.4			60.6			49.0
Effective tax rate (benefit)		22.2			22.7			(38.2	)
Average loans and leases	$	37,800,546		$	37,214,601		$	37,089,197			2			2
Average loans and leases — linked quarter annualized growth rate		6.3	%		1.4	%		(8.1)	%
Average earning assets	$	49,290,186		$	47,511,255		$	46,847,132			4			5
Average total assets		54,146,249			52,716,881			52,458,276			3			3
Average core deposits (6)		38,949,046			38,009,764			36,771,778			3			6
Average core deposits — linked quarter annualized growth rate		9.9	%		2.2	%		16.2	%
Average shareholders’ equity	$	5,645,445		$	5,519,638		$	5,733,898			2			(2	)
Total assets at end of period		53,819,642			53,246,776			51,554,665			1			4
Total shareholders’ equity at end of period		4,980,542			5,567,403			5,336,002			(11	)		(7	)
Net charge-offs (NCOs)		172,251			184,514			444,747			(7	)		(61	)
NCOs as a % of average loans and leases		1.82	%		1.98	%		4.80	%
Nonaccrual loans and leases (NALs)	$	777,948		$	981,780		$	1,916,978			(21	)		(59	)
NAL ratio		2.04	%		2.62	%		5.21	%
Nonperforming assets (NPAs)	$	844,752		$	1,104,864		$	2,058,091			(24	)		(59	)
NPA ratio		2.21	%		2.94	%		5.57	%
Allowance for loan and lease losses (ALLL) as a % of total loans and leases at the end of period		3.28			3.56			4.03
ALLL plus allowance for unfunded loan commitments and letters of credit (ACL) as a % of total loans and leases at the end of period		3.39			3.67			4.16
ACL as a % of NALs		166			140			80
ACL as a % of NPAs		153			125			74
Tier 1 leverage ratio (7)		9.41			10.54			10.09
Tier 1 common risk-based capital ratio(7)		9.25			7.39			6.76
Tier 1 risk-based capital ratio (7)		11.50			12.82			12.15
Total risk-based capital ratio (7)		14.39			15.08			14.55
Tangible common equity / risk-weighted assets ratio		9.22			7.63			7.04
Tangible equity / tangible assets ratio(8)		8.24			9.43			9.24
Tangible common equity / tangible assets ratio(9)		7.56			6.20			5.92

N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.

See Notes to the Quarterly Key Statistics and Year-to-Date Key Statistics.

-23-

HUNTINGTON BANCSHARES INCORPORATED
Annual Key Statistics⁽¹⁾
(Unaudited)

	Year Ended December 31,						Change
(dollar amounts in thousands, except per share amounts)	2010			2009			Amount			Percent
Net interest income	$	1,618,805		$	1,424,287		$	194,518			14	%
Provision for credit losses		634,547			2,074,671			(1,440,124	)		(69	)
Noninterest income		1,041,858			1,005,644			36,214			4
Noninterest expense		1,673,805			4,033,443			(2,359,638	)		(59	)
Income (loss) before income taxes		352,311			(3,678,183	)		4,030,494			N.R.
Provision (benefit) for income taxes		39,964			(584,004	)		623,968			N.R.
Net Income (loss)	$	312,347		$	(3,094,179	)	$	3,406,526			N.R.
Dividends on preferred shares		172,032			174,756			(2,724	)		(2	)
Net income (loss) applicable to common shares	$	140,315		$	(3,268,935	)	$	3,409,250			N.R.
Net income (loss) per common share — diluted	$	0.19		$	(6.14	)	$	6.33			103	%
Cash dividends declared per common share		0.04			0.04			—			—
Average common shares — basic		726,934			532,802			194,132			36
Average common shares — diluted(2)		729,532			532,802			196,730			37
Return on average assets		0.59	%		(5.90	)%
Return on average common shareholders’ equity		3.7			(80.8	)
Return on average tangible common shareholders’ equity(3)		5.6			(22.4	)
Net interest margin(4)		3.44			3.11
Efficiency ratio(5)		60.4			55.4
Effective tax rate (benefit)		11.3			(15.9	)
Average loans and leases	$	37,273,057		$	38,691,622		$	(1,418,565	)		(4)	%
Average earning assets		47,420,610			46,104,825			1,315,785			3
Average total assets		52,574,231			52,440,268			133,963			—
Average core deposits(6)		38,011,856			34,913,694			3,098,162			9
Average shareholders’ equity		5,482,502			5,787,401			(304,898	)		(5	)
Net charge-offs (NCOs)		874,474			1,476,587			(602,113	)		(41	)
NCOs as a % of average loans and leases		2.35	%		3.82	%		(1.47	)		(38	)

N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.
Notes to the Quarterly Key Statistics and Annual Key Statistics
(1)	Comparisons for all presented periods are impacted by a number of factors. Refer to “Significant Items”.
(2)	For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.
(3)	Net income (loss) excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
(4)	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.
(5)	Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).
(6)	Includes noninterest-bearing and interest-bearing demand deposits, money market deposits, savings and other domestic deposits, and core certificates of deposit.
(7)	December 31, 2010, figures are estimated. Based on an interim decision by the banking agencies on December 14, 2006, Huntington has excluded the impact of adopting ASC Topic 715, “Compensation — Retirement Benefits”, from the regulatory capital calculations.
(8)	Tangible equity (total equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
(9)	Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

-24-

EX-99.2

Exhibit 99.2

HUNTINGTON BANCSHARES INCORPORATED
Quarterly Financial Review
December 2010

Table of Contents

Consolidated Balance Sheets	1
Loans and Leases Composition	2
Deposits Composition	3
Consolidated Quarterly Average Balance Sheets	4
Consolidated Quarterly Net Interest Margin Analysis	5
Selected Quarterly Income Statement Data	6 - 7
Quarterly Mortgage Banking Income	8
Quarterly Credit Reserves Analysis	9
Quarterly Net Charge-Off Analysis	10
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	11
Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans	12
Quarterly Common Stock Summary, Capital, and Other Data	13
Consolidated Annual Average Balance Sheets	14
Consolidated Annual Net Interest Margin Analysis	15
Selected Annual Income Statement Data	16 - 17
Annual Mortgage Banking Income	18
Annual Credit Reserves Analysis	19
Annual Net Charge-Off Analysis	20
Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)	21
Annual Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans	22

Notes:

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

Huntington Bancshares Incorporated

Consolidated Balance Sheets

										Change
	2010						2009			December ’10 vs ’09
(in thousands, except numbers of shares)	December 31,			September 30,			December 31,			Amount			Percent
				(Unaudited)
Assets
Cash and due from banks	$	847,888		$	1,139,226		$	1,521,344		$	(673,456	)		(44	)%
Interest bearing deposits in banks		135,038			274,240			319,375			(184,337	)		(58	)
Trading account securities		185,404			138,677			83,657			101,747			122
Loans held for sale		793,285			744,439			461,647			331,638			72
Investment securities		9,895,244			9,723,558			8,587,914			1,307,330			15
Loans and leases(1)		38,106,507			37,500,587			36,790,663			1,315,844			4
Allowance for loan and lease losses		(1,249,008	)		(1,336,352	)		(1,482,479	)		233,471			(16	)
Net loans and leases		36,857,499			36,164,235			35,308,184			1,549,315			4
Bank owned life insurance		1,458,224			1,450,335			1,412,333			45,891			3
Premises and equipment		491,602			489,349			496,021			(4,419	)		(1	)
Goodwill		444,268			444,268			444,268			—			—
Other intangible assets		228,620			243,666			289,098			(60,478	)		(21	)
Accrued income and other assets		2,482,570			2,434,783			2,630,824			(148,254	)		(6	)
Total Assets	$	53,819,642		$	53,246,776		$	51,554,665		$	2,264,977			4	%
Liabilities and Shareholders’ Equity
Liabilities
Deposits(2)	$	41,853,898		$	41,072,371		$	40,493,927		$	1,359,971			3	%
Short-term borrowings		2,040,732			1,859,134			876,241			1,164,491			133
Federal Home Loan Bank advances		172,519			23,643			168,977			3,542			2
Other long-term debt		2,144,092			2,393,071			2,369,491			(225,399	)		(10	)
Subordinated notes		1,497,216			1,202,568			1,264,202			233,014			18
Accrued expenses and other liabilities		1,130,643			1,128,586			1,045,825			84,818			8
Total Liabilities		48,839,100			47,679,373			46,218,663			2,620,437			6
Shareholder’s Equity
Preferred stock — authorized 6,617,808 shares-
5.00% Series B Non-voting, Cumulative Preferred Stock, par value of $0.01 and liquidation value per share of $1,000		—			1,337,749			1,325,008			(1,325,008	)		(100	)
8.50% Series A Non-cumulative Perpetual Convertible Preferred Stock, par value and liquidiation value per share of $1,000		362,507			362,507			362,507			—			—
Common stock -
Par value of $0.01		8,642			7,180			7,167			1,475			21
Capital surplus		7,630,093			6,743,724			6,731,796			898,297			13
Less treasury shares at cost		(8,771	)		(8,969	)		(11,465	)		2,694			(23	)
Accumulated other comprehensive income (loss):
Unrealized losses on investment securities		(101,717	)		4,568			(103,382	)		1,665			(2	)
Unrealized gains (losses) on cash flow hedging derivatives		35,710			76,006			58,865			(23,155	)		(39	)
Pension and other postretirement benefit adjustments		(131,489	)		(108,970	)		(112,468	)		(19,021	)		17
Retained (deficit) earnings		(2,814,433	)		(2,846,392	)		(2,922,026	)		107,593			(4	)
Total Shareholders’ Equity		4,980,542			5,567,403			5,336,002			(355,460	)		(7	)
Total Liabilities and Shareholders’ Equity	$	53,819,642		$	53,246,776		$	51,554,665		$	2,264,977			4	%
Common shares authorized (par value of $0.01)		1,500,000,000			1,500,000,000			1,000,000,000
Common shares issued		864,195,369			718,015,276			716,741,249
Common shares outstanding		863,319,435			717,132,197			715,761,672
Treasury shares outstanding		875,934			883,079			979,577
Preferred shares issued		1,967,071			1,967,071			1,967,071
Preferred shares outstanding		362,507			1,760,578			1,760,578

(1)	See page 2 for detail of loans and leases.
(2)	See page 3 for detail of deposits.

1

Huntington Bancshares Incorporated
Loans and Leases Composition

	2010																2009
(dollar amounts in millions)	December 31,				September 30,				June 30,				March 31,				December 31,
					(Unaudited)				(Unaudited)				(Unaudited)
Ending Balances by Type
Commercial:(1)
Commercial and industrial(2)	$	13,063	34	%	$	12,425	34	%	$	12,392	34	%	$	12,245	33	%	$	12,888	35	%
Commercial real estate:
Construction		650	2			738	2			1,106	3			1,443	4			1,469	4
Commercial(2)		6,001	16			6,174	16			6,078	16			6,013	16			6,220	17
Commercial real estate(2)		6,651	18			6,912	18			7,184	19			7,456	20			7,689	21
Total commercial		19,714	52			19,337	52			19,576	53			19,701	53			20,577	56
Consumer:
Automobile loans and leases(3)		5,614	15			5,385	14			4,847	13			4,403	12			3,390	10
Home equity		7,713	20			7,690	21			7,510	20			7,514	20			7,563	21
Residential mortgage		4,500	12			4,511	12			4,354	12			4,614	12			4,510	12
Other loans		566	1			578	1			683	2			700	3			751	1
Total consumer		18,393	48			18,164	48			17,394	47			17,231	47			16,214	44
Total loans and leases	$	38,107	100	%	$	37,501	100	%	$	36,970	100	%	$	36,932	100	%	$	36,791	100	%
Ending Balances by Business Segment
Retail and Business Banking	$	11,717	31	%	$	11,804	31	%	$	11,772	32	%	$	11,751	32	%	$	11,792	32	%
Commercial Banking		7,792	20			7,373	20			7,317	20			7,227	20			7,658	21
Auto Finance and Commercial Real Estate		13,283	35			13,167	35			12,931	35			12,739	34			12,139	33
HWG		5,176	14			5,066	14			4,864	13			4,722	13			4,670	13
Treasury / Other(4)		139	—			91	—			86	—			493	1			532	1
Total loans and leases	$	38,107	100	%	$	37,501	100	%	$	36,970	100	%	$	36,932	100	%	$	36,791	100	%
	2010																2009
	Fourth				Third				Second				First				Fourth
Average Balances by Business Segment
Retail and Business Banking	$	11,794	31	%	$	11,817	32	%	$	11,809	32	%	$	11,779	32	%	$	11,899	32	%
Commercial Banking		7,657	20			7,419	20			7,247	20			7,316	20			7,792	21
Auto Finance and Commerical Real Estate		13,299	35			13,085	35			12,890	35			12,817	35			12,348	33
HWG		5,050	14			4,894	13			4,729	12			4,631	12			4,569	13
Treasury / Other(4)		—	—			—	—			414	1			437	1			481	1
Total loans and leases	$	37,800	100	%	$	37,215	100	%	$	37,089	100	%	$	36,980	100	%	$	37,089	100	%

(1)	There were no commercial loans outstanding that would be considered a concentration of lending to a particular industry.
(2)	The 2009 fourth quarter reflected net reclassifications from commercial real estate loans to commercial and industrial loans of $589.0 million.
(3)	The 2010 first quarter included an increase of $730.5 million resulting from the adoption of a new accounting standard to consolidate a previously off-balance automobile loan securitization transaction.
(4)	Comprised primarily of Franklin loans through the 2010 second quarter.

2

Huntington Bancshares Incorporated
Deposits Composition

	2010																2009
(dollar amounts in millions)	December 31,				September 30,				June 30,				March 31,				December 31,
					(Unaudited)				(Unaudited)				(Unaudited)
Ending Balances by Type
Demand deposits — non-interest bearing	$	7,217	17	%	$	6,926	17	%	$	6,463	16	%	$	6,938	17	%	$	6,907	17	%
Demand deposits — interest bearing		5,469	13			5,347	13			5,850	15			5,948	15			5,890	15
Money market deposits		13,410	32			12,679	31			11,437	29			10,644	26			9,485	23
Savings and other domestic deposits		4,643	11			4,613	11			4,652	12			4,666	12			4,652	11
Core certificates of deposit		8,525	20			8,765	21			8,974	23			9,441	23			10,453	26
Total core deposits		39,264	93			38,330	93			37,376	95			37,637	93			37,387	92
Other domestic deposits of $250,000 or more		675	2			730	2			678	2			684	2			652	2
Brokered deposits and negotiable CDs		1,532	4			1,576	4			1,373	3			1,605	4			2,098	5
Deposits in foreign offices		383	1			436	1			422	—			377	1			357	1
Total deposits	$	41,854	100	%	$	41,072	100	%	$	39,849	100	%	$	40,303	100	%	$	40,494	100	%
Total core deposits:
Commercial	$	12,476	32	%	$	12,262	32	%	$	11,515	31	%	$	11,844	31	%	$	11,368	30	%
Personal		26,788	68			26,068	68			25,861	69			25,793	69			26,019	70
Total core deposits	$	39,264	100	%	$	38,330	100	%	$	37,376	100	%	$	37,637	100	%	$	37,387	100	%
Ending Balances by Business Segment:
Retail and Business Banking	$	29,298	70	%	$	28,808	70	%	$	28,542	72	%	$	28,335	70	%	$	28,512	70	%
Commercial Banking		3,538	8			3,245	8			2,861	7			3,003	7			3,056	8
Auto Finance and Commercial Real Estate		753	2			739	2			725	2			653	2			618	2
HWG		7,449	18			7,184	17			6,734	17			7,134	18			6,749	17
Treasury / Other(1)		816	2			1,096	3			987	2			1,178	3			1,559	4
Total deposits	$	41,854	100	%	$	41,072	100	%	$	39,849	100	%	$	40,303	100	%	$	40,494	101	%
	2010																2009
	Fourth				Third				Second				First				Fourth
Average Balances by Business Segment:
Retail and Business Banking	$	29,241	70	%	$	28,874	71	%	$	28,592	71	%	$	28,371	71	%	$	28,381	71	%
Commercial Banking		3,471	8			3,090	8			3,001	7			3,130	8			3,014	7
Auto Finance and Commercial Real Estate		752	2			714	1			672	2			636	1			610	2
HWG		7,333	18			6,867	17			6,994	17			6,759	17			6,477	16
Treasury / Other (1)		907	2			1,101	3			1,108	3			1,327	3			1,732	4
Total deposits	$	41,704	100	%	$	40,646	100	%	$	40,367	100	%	$	40,223	100	%	$	40,214	100	%

⁽¹⁾ Comprised primarily of national market deposits.

3

Huntington Bancshares Incorporated
Consolidated Quarterly Average Balance Sheets
(Unaudited)

	Average Balances															Change
	2010												2009			4Q10 vs 4Q09
(dollar amounts in millions)	Fourth			Third			Second			First			Fourth			Amount			Percent
Assets
Interest bearing deposits in banks	$	218		$	282		$	309		$	348		$	329		$	(111	)		(34	)%
Trading account securities		297			110			127			96			110			187			170
Federal funds sold and securities purchased under resale agreements		—			—			—			—			15			(15	)		(100	)
Loans held for sale		779			663			323			346			470			309			66
Investment securities:
Taxable		9,747			8,876			8,369			8,027			8,698			1,049			12
Tax-exempt		449			365			389			443			136			313			230
Total investment securities		10,196			9,241			8,758			8,470			8,834			1,362			15
Loans and leases:(1)
Commercial:
Commercial and industrial		12,767			12,393			12,244			12,314			12,570			197			2
Commercial real estate:
Construction		716			989			1,279			1,409			1,651			(935	)		(57	)
Commercial		6,082			6,084			6,085			6,268			6,807			(725	)		(11	)
Commercial real estate		6,798			7,073			7,364			7,677			8,458			(1,660	)		(20	)
Total commercial		19,565			19,466			19,608			19,991			21,028			(1,463	)		(7	)
Consumer:
Automobile loans and leases		5,520			5,140			4,634			4,250			3,326			2,194			66
Home equity		7,709			7,567			7,544			7,539			7,561			148			2
Residential mortgage		4,430			4,389			4,608			4,477			4,417			13			—
Other loans		576			653			695			723			757			(181	)		(24	)
Total consumer		18,235			17,749			17,481			16,989			16,061			2,174			14
Total loans and leases		37,800			37,215			37,089			36,980			37,089			711			2
Allowance for loan and lease losses		(1,323	)		(1,384	)		(1,506	)		(1,510	)		(1,029	)		(294	)		29
Net loans and leases		36,477			35,831			35,583			35,470			36,060			417			1
Total earning assets		49,290			47,511			46,606			46,240			46,847			2,443			5
Cash and due from banks		1,187			1,618			1,509			1,761			1,947			(760	)		(39	)
Intangible assets		679			695			710			725			737			(58	)		(8	)
All other assets		4,313			4,277			4,384			4,486			3,956			357			9
Total Assets	$	54,146		$	52,717		$	51,703		$	51,702		$	52,458		$	1,688			3	%
Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — noninterest-bearing	$	7,188		$	6,768		$	6,849		$	6,627		$	6,466		$	722			11	%
Demand deposits — interest-bearing		5,317			5,319			5,971			5,716			5,482			(165	)		(3	)
Money market deposits		13,158			12,336			11,103			10,340			9,271			3,887			42
Savings and other domestic deposits		4,640			4,639			4,677			4,613			4,686			(46	)		(1	)
Core certificates of deposit		8,646			8,948			9,199			9,976			10,867			(2,221	)		(20	)
Total core deposits		38,949			38,010			37,799			37,272			36,772			2,177			6
Other domestic deposits of $250,000 or more		737			690			661			698			667			70			10
Brokered deposits and negotiable CDs		1,575			1,495			1,505			1,843			2,353			(778	)		(33	)
Deposits in foreign offices		443			451			402			410			422			21			5
Total deposits		41,704			40,646			40,367			40,223			40,214			1,490			4
Short-term borrowings		2,134			1,739			966			927			879			1,255			143
Federal Home Loan Bank advances		112			188			212			179			681			(569	)		(84	)
Subordinated notes and other long-term debt		3,558			3,672			3,836			4,062			3,908			(350	)		(9	)
Total interest bearing liabilities		40,320			39,477			38,532			38,764			39,216			1,104			3
All other liabilities		993			952			924			947			1,042			(49	)		(5	)
Shareholders’ equity		5,645			5,520			5,398			5,364			5,734			(89	)		(2	)
Total Liabilities and Shareholders’ Equity	$	54,146		$	52,717		$	51,703		$	51,702		$	52,458		$	1,688			3	%

⁽¹⁾ For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

4

Huntington Bancshares Incorporated
Consolidated Quarterly Net Interest Margin Analysis
(Unaudited)

	Average Rates (2)
	2010												2009
Fully-taxable equivalent basis(1)	Fourth			Third			Second			First			Fourth
Assets
Interest bearing deposits in banks		0.63	%		0.21	%		0.20	%		0.18	%		0.16	%
Trading account securities		1.98			1.20			1.74			2.15			1.89
Federal funds sold and securities purchased under resale agreements		—			—			—			—			0.03
Loans held for sale		4.01			5.75			5.02			4.98			5.13
Investment securities:
Taxable		2.42			2.77			2.85			2.94			3.20
Tax-exempt		4.59			4.70			4.62			4.37			6.42
Total investment securities		2.52			2.84			2.93			3.01			3.25
Loans and leases:(2)(3)
Commercial:
Commercial and industrial		4.94			5.14			5.31			5.60			5.20
Commercial real estate:
Construction		3.07			2.83			2.61			2.66			2.63
Commercial		3.92			3.91			3.69			3.60			3.40
Commercial real estate		3.83			3.76			3.49			3.43			3.25
Total commercial		4.56			4.64			4.63			4.76			4.41
Consumer:
Automobile loans and leases		5.46			5.79			6.46			6.63			7.09
Home equity		4.64			4.74			5.26			5.59			5.82
Residential mortgage		4.82			4.97			4.70			4.89			5.04
Other loans		7.92			7.10			6.84			7.00			6.90
Total consumer		5.04			5.19			5.49			5.73			5.92
Total loans and leases		4.79			4.90			5.04			5.21			5.07
Total earning assets		4.29	%		4.49	%		4.63	%		4.82	%		4.70	%
Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%		—	%		—	%		—	%
Demand deposits — interest-bearing		0.13			0.17			0.22			0.22			0.22
Money market deposits		0.77			0.86			0.93			1.00			1.21
Savings and other domestic deposits		0.90			0.99			1.07			1.19			1.27
Core certificates of deposit		2.11			2.31			2.68			2.93			3.07
Total core deposits		1.05			1.18			1.33			1.51			1.71
Other domestic deposits of $250,000 or more		1.21			1.28			1.37			1.44			1.88
Brokered deposits and negotiable CDs		1.53			2.21			2.56			2.49			2.52
Deposits in foreign offices		0.17			0.22			0.19			0.19			0.18
Total deposits		1.06			1.21			1.37			1.55			1.75
Short-term borrowings		0.20			0.22			0.21			0.21			0.24
Federal Home Loan Bank advances		0.95			1.25			1.93			2.71			1.01
Subordinated notes and other long-term debt		2.15			2.15			2.05			2.25			2.67
Total interest bearing liabilities		1.11			1.25			1.41			1.60			1.80
Net interest rate spread		3.16			3.24			3.22			3.22			2.90
Impact of noninterest bearing funds on margin		0.21			0.21			0.24			0.25			0.29
Net interest margin		3.37	%		3.45	%		3.46	%		3.47	%		3.19	%

(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, non-deferrable fees, and amortized fees.
(3)	For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

5

Huntington Bancshares Incorporated
Selected Quarterly Income Statement Data⁽¹⁾
(Unaudited)

	2010												2009			4Q10 vs 4Q09
(dollar amounts in thousands, except per share amounts)	Fourth			Third			Second			First			Fourth			Amount			Percent
Interest income	$	528,291		$	534,669		$	535,653		$	546,779		$	551,335		$	(23,044	)		(4	)%
Interest expense		112,997			124,707			135,997			152,886			177,271			(64,274	)		(36	)
Net interest income		415,294			409,962			399,656			393,893			374,064			41,230			11
Provision for credit losses		86,973			119,160			193,406			235,008			893,991			(807,018	)		(90	)
Net interest income (loss) after provision for credit losses		328,321			290,802			206,250			158,885			(519,927	)		848,248			N.R.
Service charges on deposit accounts		55,810			65,932			75,934			69,339			76,757			(20,947	)		(27	)
Mortgage banking income		53,170			52,045			45,529			25,038			24,618			28,552			116
Trust services		29,394			26,997			28,399			27,765			27,275			2,119			8
Electronic banking		28,900			28,090			28,107			25,137			25,173			3,727			15
Insurance income		19,678			19,801			18,074			18,860			16,128			3,550			22
Brokerage income		16,953			16,575			18,425			16,902			16,045			908			6
Bank owned life insurance income		16,113			14,091			14,392			16,470			14,055			2,058			15
Automobile operating lease income		10,463			11,356			11,842			12,303			12,671			(2,208	)		(17	)
Securities (losses) gains		(103	)		(296	)		156			(31	)		(2,602	)		2,499			(96	)
Other income		33,842			32,552			28,785			29,069			34,426			(584	)		(2	)
Total noninterest income		264,220			267,143			269,643			240,852			244,546			19,674			8
Personnel costs		212,184			208,272			194,875			183,642			180,663			31,521			17
Outside data processing and other services		40,943			38,553			40,670			39,082			36,812			4,131			11
Net occupancy		26,670			26,718			29,719			24,755			26,273			397			2
Deposit and other insurance expense		23,320			23,406			21,736			29,086			24,420			(1,100	)		(5	)
Professional services		21,021			20,672			35,555			11,530			25,146			(4,125	)		(16	)
Equipment		22,060			21,651			21,585			20,624			20,454			1,606			8
Marketing		16,168			20,921			6,138			22,697			9,074			7,094			78
Amortization of intangibles		15,046			15,145			15,141			15,146			17,060			(2,014	)		(12	)
OREO and foreclosure expense		10,502			12,047			6,434			10,066			18,520			(8,018	)		(43	)
Automobile operating lease expense		8,142			9,159			8,580			11,153			10,440			(2,298	)		(22	)
Goodwill impairment		—			—			—			—			—			—			—
Gain on early extinguishment of debt (2)		—			—			—			—			(73,615	)		73,615			(100	)
Other expense		38,537			30,765			33,377			30,312			27,349			11,188			41
Total noninterest expense		434,593			427,309			413,810			398,093			322,596			111,997			35
Income (loss) before income taxes		157,948			130,636			62,083			1,644			(597,977	)		755,925			N.R.
Provision (benefit) for income taxes		35,048			29,690			13,319			(38,093	)		(228,290	)		263,338			N.R.
Net income (loss)	$	122,900		$	100,946		$	48,764		$	39,737		$	(369,687	)	$	492,587			N.R.
Dividends on preferred shares		83,754			29,495			29,426			29,357			29,289			54,465			186
Net income (loss) applicable to common shares	$	39,146		$	71,451		$	19,338		$	10,380		$	(398,976	)	$	438,122			N.R.
Average common shares — basic		757,924			716,911			716,580			716,320			715,336			42,588			6	%
Average common shares — diluted (3)		760,582			719,567			719,387			718,593			715,336			45,246			6
Per common share
Net income (loss) — basic	$	0.05		$	0.10		$	0.03		$	0.01		$	(0.56	)	$	0.61			N.R.
Net income (loss) — diluted		0.05			0.10			0.03			0.01			(0.56	)		0.61			N.R.
Cash dividends declared		0.01			0.01			0.01			0.01			0.01			—			—
Return on average total assets		0.90	%		0.76	%		0.38	%		0.31	%		(2.80	)%		3.70	%		N.R.
Return on average common shareholders’ equity		3.8			7.4			2.1			1.1			(39.1	)		42.9			N.R.
Return on average common tangible shareholders’ equity (4)		5.6			10.0			3.8			2.7			(45.1	)		50.70			N.R.
Net interest margin (5)		3.37			3.45			3.46			3.47			3.19			0.18			6
Efficiency ratio (6)		61.4			60.6			59.4			60.1			49.0			12.4			25
Effective tax rate (benefit)		22.2			22.7			21.5			—			(38.2	)		60.4			N.R.
Revenue — fully-taxable equivalent (FTE)
Net interest income	$	415,294		$	409,962		$	399,656		$	393,893		$	374,064		$	41,230			11
FTE adjustment		3,708			2,631			2,490			2,248			2,497			1,211			48
Net interest income (5)		419,002			412,593			402,146			396,141			376,561			42,441			11
Noninterest income		264,220			267,143			269,643			240,852			244,546			19,674			8
Total revenue (5)	$	683,222		$	679,736		$	671,789		$	636,993		$	621,107		$	62,115			10	%

N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.

6

(1)	Comparisons for presented periods are impacted by a number of factors. Refer to “Significant Items” for additional discussion regarding these key factors.
(2)	The 2009 fourth quarter gain related to the purchase of certain subordinated bank notes.
(3)	For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.
(4)	Net income (loss) excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
(5)	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.
(6)	Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

7

Huntington Bancshares Incorporated
Quarterly Mortgage Banking Income
(Unaudited)

	2010												2009			4Q10 vs 4Q09
(in thousands, except as noted)	Fourth			Third			Second			First			Fourth			Amount			Percent
Mortgage Banking Income
Origination and secondary marketing	$	48,236		$	35,840		$	19,778		$	13,586		$	16,473		$	31,763			193	%
Servicing fees		11,474			12,053			12,178			12,418			12,289			(815	)		(7	)
Amortization of capitalized servicing		(13,960	)		(13,003	)		(10,137	)		(10,065	)		(10,791	)		(3,169	)		29
Other mortgage banking income		4,790			4,966			3,664			3,210			4,466			324			7
Subtotal		50,540			39,856			25,483			19,149			22,437			28,103			125
MSR valuation adjustment(1)		31,319			(12,047	)		(26,221	)		(5,772	)		15,491			15,828			102
Net trading gains (losses) related to MSR hedging		(28,689	)		24,236			46,268			11,661			(13,310	)		(15,379	)		116
Total mortgage banking income	$	53,170		$	52,045		$	45,530		$	25,038		$	24,618		$	28,552			116	%
Mortgage originations (in millions)	$	1,827		$	1,619		$	1,161		$	869		$	1,131		$	696			62	%
Average trading account securities used to hedge MSRs (in millions)		184			23			28			18			19			165			868
Capitalized mortgage servicing rights(2)		196,194			161,594			179,138			207,552			214,592			(18,398	)		(9	)
Total mortgages serviced for others (in millions)(2)		15,933			15,713			15,954			15,968			16,010			(77	)		—
MSR % of investor servicing portfolio		1.23	%		1.03	%		1.12	%		1.30	%		1.34	%		(0.11	)%		(8	)
Net Impact of MSR Hedging
MSR valuation adjustment(1)	$	31,319		$	(12,047	)	$	(26,221	)	$	(5,772	)	$	15,491		$	15,828			102	%
Net trading gains (losses) related to MSR hedging		(28,689	)		24,236			46,268			11,661			(13,310	)		(15,379	)		116
Net interest income related to MSR hedging		713			32			58			169			168			545			324
Net impact of MSR hedging	$	3,343		$	12,221		$	20,105		$	6,058		$	2,349		$	994			42	%

(1)	The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)	At period end.

8

Huntington Bancshares Incorporated
Quarterly Credit Reserves Analysis
(Unaudited)

	2010												2009
(dollar amounts in thousands)	Fourth			Third			Second			First			Fourth
Allowance for loan and lease losses, beginning of period	$	1,336,352		$	1,402,160		$	1,477,969		$	1,482,479		$	1,031,971
Loan and lease losses		(205,587	)		(221,144	)		(312,954	)		(264,222	)		(471,486	)
Recoveries of loans previously charged off		33,336			36,630			33,726			25,741			26,739
Net loan and lease losses		(172,251	)		(184,514	)		(279,228	)		(238,481	)		(444,747	)
Provision for loan and lease losses		84,907			118,788			203,633			233,971			895,255
Allowance of assets sold		—			(82	)		(214	)		—			—
Allowance for loans transferred to held-for-sale		—			—			—			—			—
Allowance for loan and lease losses, end of period	$	1,249,008		$	1,336,352		$	1,402,160		$	1,477,969		$	1,482,479
Allowance for unfunded loan commitments and letters of credit, beginning of period	$	40,061		$	39,689		$	49,916		$	48,879		$	50,143
Provision for (Reduction in) unfunded loan commitments and letters of credit losses		2,066			372			(10,227	)		1,037			(1,264	)
Allowance for unfunded loan commitments and letters of credit, end of period	$	42,127		$	40,061		$	39,689		$	49,916		$	48,879
Total allowance for credit losses	$	1,291,135		$	1,376,413		$	1,441,849		$	1,527,885		$	1,531,358
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		3.28	%		3.56	%		3.79	%		4.00	%		4.03	%
Nonaccrual loans and leases (NALs)		161			136			117			84			77
Nonperforming assets (NPAs)		148			121			89			77			72
Total allowance for credit losses (ACL) as % of:
Total loans and leases		3.39	%		3.67	%		3.90	%		4.14	%		4.16	%
Nonaccrual loans and leases		166			140			120			87			80
Nonperforming assets		153			125			91			80			74

9

Huntington Bancshares Incorporated
Quarterly Net Charge-Off Analysis
(Unaudited)

	2010												2009
(dollar amounts in thousands)	Fourth			Third			Second			First			Fourth
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial	$	59,124		$	62,241		$	58,128		$	75,439		$	109,816
Commercial real estate:
Construction		11,084			17,936			45,562			34,426			85,345
Commercial		33,787			45,725			36,169			50,873			172,759
Commercial real estate		44,871			63,661			81,731			85,299			258,104
Total commercial		103,995			125,902			139,859			160,738			367,920
Consumer:
Automobile loans and leases		7,035			5,570			5,436			8,531			12,928
Home equity		29,175			27,827			44,470	(1)		37,901			35,764
Residential mortgage		26,775	(3)		18,961			82,848	(2)		24,311			17,789
Other loans		5,271			6,254			6,615			7,000			10,346
Total consumer		68,256			58,612			139,369			77,743			76,827
Total net charge-offs	$	172,251		$	184,514		$	279,228		$	238,481		$	444,747
Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial		1.85	%		2.01	%		1.90	%		2.45	%		3.49	%
Commercial real estate:
Construction		6.19			7.25			14.25			9.77			20.68
Commercial		2.22			3.01			2.38			3.25			10.15
Commercial real estate		2.64			3.60			4.44			4.44			12.21
Total commercial		2.13			2.59			2.85			3.22			7.00
Consumer:
Automobile loans and leases		0.51			0.43			0.47			0.80			1.55
Home equity(1)		1.51			1.47			2.36			2.01			1.89
Residential mortgage(2)		2.42			1.73			7.19			2.17			1.61
Other loans		3.66			3.83			3.81			3.87			5.47
Total consumer		1.50			1.32			3.19			1.83			1.91
Net charge-offs as a % of average loans		1.82	%		1.98	%		3.01	%		2.58	%		4.80	%

(1)	The 2010 second quarter included net charge-offs of $14,678 thousand associated with the transfer of Franklin-related loans to loans held for sale and $1,262 thousand of other Franklin-related net charge-offs.
(2)	The 2010 second quarter included net charge-offs of $60,822 thousand associated with the transfer of Franklin-related loans to loans held for sale and $3,403 thousand of other Franklin-related net charge-offs.
(3)	The 2010 fourth quarter included net charge-offs of $16,389 thousand related to the sale of certain underperforming residential mortgage loans.

10

Huntington Bancshares Incorporated
Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)

	2010												2009
(dollar amounts in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
Nonaccrual loans and leases (NALs):
Commercial and industrial	$	346,720		$	398,353		$	429,561		$	511,588		$	578,414
Commercial real estate		363,692			478,754			663,103			826,781			935,812
Total residential mortgages		45,010			82,984			86,486			372,950			362,630
Home equity		22,526			21,689			22,199			54,789			40,122
Total nonaccrual loans and leases		777,948			981,780			1,201,349			1,766,108			1,916,978
Other real estate, net:
Residential		31,649			65,775			71,937			68,289			71,427
Commercial		35,155			57,309			67,189			83,971			68,717
Total other real estate, net		66,804			123,084			139,126			152,260			140,144
Impaired loans held for sale(1)		—			—			242,227			—			969
Total nonperforming assets	$	844,752		$	1,104,864		$	1,582,702		$	1,918,368		$	2,058,091
Nonperforming Franklin assets:
Residential mortgage	$	—		$	—		$	—		$	297,967		$	299,670
Home Equity		—			—			—			31,067			15,004
OREO		9,477			15,330			24,515			24,423			23,826
Impaired loans held for sale		—			—			242,227			—			—
Total nonperforming Franklin assets	$	9,477		$	15,330		$	266,742		$	353,457		$	338,500
Nonaccrual loans and leases as a % of total loans and leases		2.04	%		2.62	%		3.25	%		4.78	%		5.21	%
NPA ratio(2)		2.21			2.94			4.24			5.17			5.57

	2010												2009
	Fourth			Third			Second			First			Fourth
Nonperforming assets, beginning of period	$	1,104,864		$	1,582,702		$	1,918,368		$	2,058,091		$	2,344,042
New nonperforming assets		237,802			278,388			171,595			237,914			494,607
Franklin impact, net		(5,853	)		(244,389	)		(86,715	)		14,957			(30,996	)
Returns to accruing status		(100,051	)		(111,168	)		(78,739	)		(80,840	)		(85,867	)
Loan and lease losses		(126,047	)		(155,553	)		(173,159	)		(185,387	)		(391,635	)
OREO losses		(5,117	)		(5,302	)		2,483			(4,160	)		(7,394	)
Payments		(191,296	)		(213,095	)		(140,881	)		(107,640	)		(222,790	)
Sales		(69,550	)		(26,719	)		(30,250	)		(14,567	)		(41,876	)
Nonperforming assets, end of period	$	844,752		$	1,104,864		$	1,582,702		$	1,918,368		$	2,058,091

(1)	The June 30, 2010, figure represented NALs associated with the transfer of Franklin-related residential mortgage and home equity loans to loans held for sale. The December 31, 2009, figure primarily represented impaired loans obtained from the Sky Financial acquisition. Held for sale loans are carried at the lower of cost or fair value less costs to sell.
(2)	Nonperforming assets divided by the sum of loans and leases, impaired loans held for sale, and net other real estate.

11

Huntington Bancshares Incorporated
Quarterly Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans
(Unaudited)

	2010												2009
(dollar amounts in thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	—		$	—		$	—		$	475		$	—
Commercial real estate		—			—			—			—			—
Residential mortgage (excluding loans guaranteed by the U.S. Government)		53,983			56,803			47,036			72,702			78,915
Home equity		23,497			27,160			26,797			29,438			53,343
Other loans and leases		10,177			11,423			9,533			10,598			13,400
Total, excl. loans guaranteed by the U.S. Government		87,657			95,386			83,366			113,213			145,658
Add: loans guaranteed by U.S. Government		98,288			94,249			95,421			96,814			101,616
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	185,945		$	189,635		$	178,787		$	210,027		$	247,274
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.23	%		0.25	%		0.23	%		0.31	%		0.40	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.26	%		0.26	%		0.26	%		0.26	%		0.28	%
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.49	%		0.51	%		0.49	%		0.57	%		0.68	%
Accruing troubled debt restructured loans
Commercial	$	171,830		$	157,971		$	141,353		$	117,667		$	157,049
Total residential mortgages		313,020			287,481			269,570			242,870			219,639
Other		76,586			73,210			65,061			62,148			52,871
Total accruing troubled debt restructured loans	$	561,436		$	518,662		$	475,984		$	422,685		$	429,559

12

Huntington Bancshares Incorporated
Quarterly Common Stock Summary, Capital, and Other Data
(Unaudited)

Quarterly common stock summary

	2010								2009
(dollar amounts in thousands, except per share amounts)	Fourth		Third		Second		First		Fourth
Common stock price, per share
High(1)	$	7.000	$	6.450	$	7.400	$	5.810	$	4.770
Low(1)		5.430		5.040		5.260		3.650		3.500
Close		6.870		5.690		5.540		5.390		3.650
Average closing price		6.050		5.787		6.130		4.840		3.970
Dividends, per share
Cash dividends declared per common share	$	0.01	$	0.01	$	0.01	$	0.01	$	0.01
Common shares outstanding
Average — basic		757,924		716,911		716,580		716,320		715,336
Average — diluted(2)		760,582		719,567		719,387		718,593		715,336
Ending		863,319		717,132		716,623		716,557		715,762
Book value per common share	$	5.35	$	5.39	$	5.22	$	5.13	$	5.10
Tangible book value per common share(3)		4.66		4.55		4.37		4.26		4.21

Capital data

	2010												2009
(dollar amounts in millions)	December 31,			September 30,			June 30,			March 31,			December 31,
Calculation of tangible equity / asset ratio:
Total shareholders’ equity	$	4,981		$	5,567		$	5,438		$	5,370		$	5,336
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(229	)		(244	)		(259	)		(274	)		(289	)
Add: related deferred tax liability(3)		80			85			91			95			101
Total tangible equity		4,388			4,964			4,826			4,747			4,704
Less: Preferred equity		(363	)		(1,700	)		(1,696	)		(1,692	)		(1,688	)
Total tangible common equity	$	4,025		$	3,264		$	3,130		$	3,055		$	3,016
Total assets	$	53,820		$	53,247		$	51,771		$	51,867		$	51,555
Less: goodwill		(444	)		(444	)		(444	)		(444	)		(444	)
Less: other intangible assets		(229	)		(244	)		(259	)		(274	)		(289	)
Add: related deferred tax liability(3)		80			85			91			95			101
Total tangible assets	$	53,227		$	52,644		$	51,159		$	51,244		$	50,923
Tangible equity / tangible asset ratio		8.24	%		9.43	%		9.43	%		9.26	%		9.24	%
Tangible common equity / tangible asset ratio		7.56			6.20			6.12			5.96			5.92
Other capital data:
Total risk-weighted assets	$	43,678		$	42,759		$	42,486		$	42,418		$	42,816
Tier 1 leverage ratio(4)		9.41	%		10.54	%		10.45	%		10.05	%		10.09	%
Tier 1 common risk-based capital ratio(4)		9.25			7.39			7.06			6.55			6.76
Tier 1 risk-based capital ratio(4)		11.50			12.82			12.51			12.00			12.15
Total risk-based capital ratio(4)		14.39			15.08			14.79			14.31			14.55
Tangible common equity / risk-weighted assets ratio		9.22			7.63			7.37			7.20			7.04
Other data:
Number of employees (full-time equivalent)		11,341			11,279			11,117			10,678			10,272
Number of domestic full-service branches(5)		620			617			617			617			611

(1)	High and low stock prices are intra-day quotes obtained from NASDAQ.
(2)	For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.
(3)	Other intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
(4)	December 31, 2010, figures are estimated. Based on an interim decision by the banking agencies on December 14, 2006, Huntington has excluded the impact of adopting ASC Topic 715, “Compensation — Retirement Benefits”, from the regulatory capital calculations.
(5)	Includes 9 Private Financial Group offices.

13

Huntington Bancshares Incorporated
Consolidated Annual Average Balance Sheets
(Unaudited)

	Annual Average Balances
				Change from 2009									Change from 2008
(dollar amounts in millions)	2010			Amount			%			2009			Amount			%			2008
Assets
Interest bearing deposits in banks	$	289		$	(72	)		(20	)%	$	361		$	58			19	%	$	303
Trading account securities		158			13			9			145			(945	)		(87	)		1,090
Federal funds sold and securities purchased under resale agreements		—			(10	)		(100	)		10			(425	)		(98	)		435
Loans held for sale		529			(53	)		(9	)		582			166			40			416
Investment securities:
Taxable		8,760			2,659			44			6,101			2,223			57			3,878
Tax-exempt		411			197			92			214			(491	)		(70	)		705
Total investment securities		9,171			2,856			45			6,315			1,732			38			4,583
Loans and leases:(1)
Commercial:
Commercial and industrial		12,431			(705	)		(5	)		13,136			(452	)		(3	)		13,588
Commercial real estate:
Construction		1,096			(762	)		(41	)		1,858			(203	)		(10	)		2,061
Commercial		6,129			(1,169	)		(16	)		7,298			(373	)		(5	)		7,671
Commercial real estate		7,225			(1,931	)		(21	)		9,156			(576	)		(6	)		9,732
Total commercial		19,656			(2,636	)		(12	)		22,292			(1,028	)		(4	)		23,320
Consumer:
Automobile loans and leases		4,890			1,344			38			3,546			(981	)		(22	)		4,527
Home equity		7,590			—			—			7,590			186			3			7,404
Residential mortgage		4,476			(66	)		(1	)		4,542			(476	)		(9	)		5,018
Other loans		661			(61	)		(8	)		722			31			4			691
Total consumer		17,617			1,217			7			16,400			(1,240	)		(7	)		17,640
Total loans and leases		37,273			(1,419	)		(4	)		38,692			(2,268	)		(6	)		40,960
Allowance for loan and lease losses		(1,430	)		(474	)		50			(956	)		(261	)		38			(695	)
Net loans and leases		35,843			(1,893	)		(5	)		37,736			(2,529	)		(6	)		40,265
Total earning assets		47,420			1,315			3			46,105			(1,682	)		(4	)		47,787
Cash and due from banks		1,518			(614	)		(29	)		2,132			1,174			123			958
Intangible assets		702			(700	)		(50	)		1,402			(2,044	)		(59	)		3,446
All other assets		4,364			607			16			3,757			332			10			3,425
Total Assets	$	52,574		$	134			—	%	$	52,440		$	(2,481	)		(5	)%	$	54,921
Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — noninterest-bearing	$	6,859		$	802			13	%	$	6,057		$	962			19	%	$	5,095
Demand deposits — interest-bearing		5,579			763			16			4,816			813			20			4,003
Money market deposits		11,743			4,527			63			7,216			1,123			18			6,093
Savings and other domestic deposits		4,642			(239	)		(5	)		4,881			(266	)		(5	)		5,147
Core certificates of deposit		9,188			(2,756	)		(23	)		11,944			307			3			11,637
Total core deposits		38,011			3,097			9			34,914			2,939			9			31,975
Other domestic deposits of $250,000 or more		697			(144	)		(17	)		841			(802	)		(49	)		1,643
Brokered deposits and negotiable CDs		1,603			(1,544	)		(49	)		3,147			(96	)		(3	)		3,243
Deposits in foreign offices		427			(60	)		(12	)		487			(488	)		(50	)		975
Total deposits		40,738			1,349			3			39,389			1,553			4			37,836
Short-term borrowings		1,446			513			55			933			(1,441	)		(61	)		2,374
Federal Home Loan Bank advances		173			(1,063	)		(86	)		1,236			(2,045	)		(62	)		3,281
Subordinated notes and other long-term debt		3,780			(541	)		(13	)		4,321			227			6			4,094
Total interest bearing liabilities		39,278			(544	)		(1	)		39,822			(2,668	)		(6	)		42,490
All other liabilities		956			182			24			774			(166	)		(18	)		940
Shareholders’ equity		5,481			(306	)		(5	)		5,787			(609	)		(10	)		6,396
Total Liabilities and Shareholders’ Equity	$	52,574		$	134			—	%	$	52,440		$	(2,481	)		(5	)%	$	54,921

⁽¹⁾ For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

14

Huntington Bancshares Incorporated
Consolidated Annual Net Interest Margin Analysis
(Unaudited)

	Annual Average Rates(2)
Fully-taxable equivalent basis(1)	2010			2009			2008
Assets
Interest bearing deposits in banks		0.28	%		0.32	%		2.53	%
Trading account securities		1.82			2.99			5.28
Federal funds sold and securities purchased under resale agreements		—			0.13			2.46
Loans held for sale		4.85			5.15			6.01
Investment securities:
Taxable		2.73			4.10			5.62
Tax-exempt		4.56			6.68			6.83
Total investment securities		2.81			4.18			5.81
Loans and leases:(3)
Commercial:
Commercial and industrial		5.31			5.06			5.67
Commercial real estate:
Construction		2.79			2.74			5.05
Commercial		3.83			3.59			5.61
Commercial real estate		3.67			3.42			5.49
Total commercial		4.71			4.39			5.59
Consumer:
Automobile loans and leases		6.04			7.12			6.88
Home equity		5.06			5.62			6.42
Residential mortgage		4.84			5.23			5.83
Other loans		7.18			7.78			9.85
Total consumer		5.35			5.93			6.50
Total loans and leases		5.02			5.04			5.99
Total earning assets		4.55	%		4.88	%		5.90	%
Liabilities and Shareholders’ Equity
Deposits:
Demand deposits — noninterest-bearing		—	%		—	%		—	%
Demand deposits — interest-bearing		0.19			0.20			0.55
Money market deposits		0.88			1.16			1.93
Savings and other domestic deposits		1.04			1.37			1.95
Core certificates of deposit		2.52			3.43			4.26
Total core deposits		1.26			1.97			2.74
Other domestic deposits of $250,000 or more		1.32			2.48			3.77
Brokered deposits and negotiable CDs		2.21			2.64			3.66
Deposits in foreign offices		0.20			0.19			1.56
Total deposits		1.30			2.02			2.85
Short-term borrowings		0.21			0.25			1.78
Federal Home Loan Bank advances		1.80			1.04			3.29
Subordinated notes and other long-term debt		2.15			2.88			4.51
Total interest bearing liabilities		1.34			2.04			2.98
Net interest rate spread		3.21			2.84			2.92
Impact of noninterest bearing funds on margin		0.23			0.27			0.33
Net interest margin		3.44	%		3.11	%		3.25	%

(1)	Fully-taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 16 for the FTE adjustment.
(2)	Loan and lease and deposit average rates include impact of applicable derivatives, non-deferrable fees, and amortized fees.
(3)	For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans.

15

Huntington Bancshares Incorporated
Selected Annual Income Statement Data⁽¹⁾
(Unaudited)

	Year Ended December 31,
				Change from 2009									Change from 2008
(dollar amounts in thousands, except per share amounts)	2010			Amount			%			2009			Amount			%			2008
Interest income	$	2,145,392		$	(92,750	)		(4	)%	$	2,238,142		$	(560,180	)		(20	)%	$	2,798,322
Interest expense		526,587			(287,268	)		(35	)		813,855			(452,776	)		(36	)		1,266,631
Net interest income		1,618,805			194,518			14			1,424,287			(107,404	)		(7	)		1,531,691
Provision for credit losses		634,547			(1,440,124	)		(69	)		2,074,671			1,017,208			96			1,057,463
Net interest income (loss) after provision for credit losses		984,258			1,634,642			N.R.			(650,384	)		(1,124,612	)		N.R.			474,228
Service charges on deposit accounts		267,015			(35,784	)		(12	)		302,799			(5,254	)		(2	)		308,053
Mortgage banking income		175,782			63,484			57			112,298			103,304			1,149			8,994
Trust services		112,555			8,916			9			103,639			(22,341	)		(18	)		125,980
Electronic banking		110,234			10,083			10			100,151			9,884			11			90,267
Insurance income		76,413			3,087			4			73,326			702			1			72,624
Brokerage income		68,855			4,012			6			64,843			(329	)		(1	)		65,172
Bank owned life insurance income		61,066			6,194			11			54,872			96			—			54,776
Automobile operating lease income		45,964			(5,846	)		(11	)		51,810			11,959			30			39,851
Securities losses		(274	)		9,975			(97	)		(10,249	)		187,121			(95	)		(197,370	)
Other income		124,248			(27,907	)		(18	)		152,155			13,364			10			138,791
Total noninterest income		1,041,858			36,214			4			1,005,644			298,506			42			707,138
Personnel costs		798,973			98,491			14			700,482			(83,064	)		(11	)		783,546
Outside data processing and other services		159,248			11,153			8			148,095			17,869			14			130,226
Net occupancy		107,862			2,589			2			105,273			(3,155	)		(3	)		108,428
Deposit and other insurance expense		97,548			(16,282	)		(14	)		113,830			91,393			407			22,437
Professional services		88,778			12,412			16			76,366			26,753			54			49,613
Equipment		85,920			2,803			3			83,117			(10,848	)		(12	)		93,965
Marketing		65,924			32,875			99			33,049			385			1			32,664
Amortization of intangibles		60,478			(7,829	)		(11	)		68,307			(8,587	)		(11	)		76,894
OREO and foreclosure expense		39,049			(54,850	)		(58	)		93,899			60,444			181			33,455
Automobile operating lease expense		37,034			(6,326	)		(15	)		43,360			12,078			39			31,282
Goodwill impairment		—			(2,606,944	)		(100	)		2,606,944			2,606,944			—			—
Gain on early extinguishment of debt(2)		—			147,442			(100	)		(147,442	)		(123,900	)		526			(23,542	)
Other expense		132,991			24,828			23			108,163			(30,243	)		(22	)		138,406
Total noninterest expense		1,673,805			(2,359,638	)		(59	)		4,033,443			2,556,069			173			1,477,374
Income (loss) before income taxes		352,311			4,030,494			N.R.			(3,678,183	)		(3,382,175	)		1,143			(296,008	)
Provision (benefit) for income taxes		39,964			623,968			N.R.			(584,004	)		(401,802	)		221			(182,202	)
Net income (loss)	$	312,347		$	3,406,526			N.R.		$	(3,094,179	)	$	(2,980,373	)		2,619		$	(113,806	)
Dividends on preferred shares		172,032			(2,724	)		(2	)		174,756			128,356			277.0			46,400
Net income (loss) applicable to common shares	$	140,315		$	3,409,250			N.R.		$	(3,268,935	)	$	(3,108,729	)		1,940	%	$	(160,206	)
Average common shares — basic		726,934			194,132			36	%		532,802			166,647			46	%		366,155
Average common shares — diluted(3)		729,532			196,730			37			532,802			166,647			46			366,155
Per common share
Net income (loss) — basic	$	0.19		$	6.33			N.R.		$	(6.14	)	$	(5.70	)		1,295	%	$	(0.44	)
Net income (loss) — diluted		0.19			6.33			N.R.			(6.14	)		(5.70	)		1,295			(0.44	)
Cash dividends declared		0.0400			—			—			0.0400			(0.6225	)		(94	)		0.6625
Return on average total assets		0.59	%		6.49	%		N.R.			(5.90	)%		(5.69	)%		2,710	%		(0.21	)%
Return on average common shareholders’ equity		3.7			84.5			N.R.			(80.8	)		(79.0	)		4,389			(1.8	)
Return on average tangible common shareholders’ equity(4)		5.6			28.0			N.R.			(22.4	)		(18.8	)		522			(3.6	)
Net interest margin(5)		3.44			0.33			11			3.11			(0.14	)		(4	)		3.25
Efficiency ratio(6)		60.4			5.0			9			55.4			(1.6	)		(3	)		57.0
Effective tax rate (benefit)		11.3			27.2			N.R.			(15.9	)		45.7			(74	)		(61.6	)
Revenue — fully taxable equivalent (FTE)
Net interest income	$	1,618,805		$	194,518			14	%	$	1,424,287		$	(107,404	)		(7	)%	$	1,531,691
FTE adjustment(5)		11,077			(395	)		(3	)		11,472			(8,746	)		(43	)		20,218
Net interest income		1,629,882			194,123			14			1,435,759			(116,150	)		(7	)		1,551,909
Noninterest income		1,041,858			36,214			4			1,005,644			298,506			42			707,138
Total revenue	$	2,671,740		$	230,337			9	%	$	2,441,403		$	182,356			8	%	$	2,259,047

N.R. — Not relevant, as denominator of calculation is a loss in prior period compared with income in current period.
(1)	Comparisons for presented periods are impacted by a number of factors. Refer to the “Significant Items” discussion.

16

(2)	The 2009 gain included $67.4 million related to the purchase of certain trust preferred securities.
(3)	For all periods presented, the impact of the convertible preferred stock issued in 2008 and the warrants issued to the U.S. Department of the Treasury in 2008 related to Huntington’s participation in the voluntary Capital Purchase Program was excluded from the diluted share calculation because the result was more than basic earnings per common share (anti-dilutive) for the periods.
(4)	Net income excluding expense for amortization of intangibles for the period divided by average tangible shareholders’ equity. Average tangible shareholders’ equity equals average total shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.
(5)	On a fully-taxable equivalent (FTE) basis assuming a 35% tax rate.
(6)	Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

17

Huntington Bancshares Incorporated
Annual Mortgage Banking Income
(Unaudited)

	Year Ended December 31,
(dollar amounts in thousands, except as noted)	2010			2009			2008			2007			2006
Mortgage Banking Income
Origination and secondary marketing	$	117,440		$	94,711		$	37,257		$	25,965		$	18,217
Servicing fees		48,123			48,494			45,558			36,012			24,659
Amortization of capitalized servicing		(47,165	)		(47,571	)		(26,634	)		(20,587	)		(15,144	)
Other mortgage banking income		16,629			23,360			16,768			13,198			10,173
Subtotal		135,027			118,994			72,949			54,588			37,905
MSR valuation adjustment(1)		(12,721	)		34,305			(52,668	)		(16,131	)		4,871
Net trading gains (losses) related to MSR hedging		53,476			(41,001	)		(11,287	)		(8,653	)		(1,285	)
Total mortgage banking income	$	175,782		$	112,298		$	8,994		$	29,804		$	41,491
Mortgage originations (in millions)	$	5,476		$	5,262		$	3,773		$	3,493		$	2,822
Average trading account securities used to hedge MSRs (in millions)		64			70			1,031			594			26
Capitalized mortgage servicing rights(2)		196,194			214,592			167,438			207,894			131,104
Total mortgages serviced for others (in millions)(2)		15,933			16,010			15,754			15,088			8,252
MSR % of investor servicing portfolio		1.23	%		1.34	%		1.06	%		1.38	%		1.59	%
Net Impact of MSR Hedging
MSR valuation adjustment(1)	$	(12,721	)	$	34,305		$	(52,668	)	$	(16,131	)	$	4,871
Net trading gains (losses) related to MSR hedging		53,476			(41,001	)		(11,287	)		(8,653	)		(1,285	)
Net interest income related to MSR hedging		972			2,999			33,139			5,797			36
Net impact of MSR hedging	$	41,727		$	(3,697	)	$	(30,816	)	$	(18,987	)	$	3,622

(1)	The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing.
(2)	At period end.

18

Huntington Bancshares Incorporated
Annual Credit Reserves Analysis
(Unaudited)

	Year Ended December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006
Allowance for loan and lease losses, beginning of period	$	1,482,479		$	900,227		$	578,442		$	272,068		$	268,347
Acquired allowance for loan and lease losses		—			—			—			188,128			23,785
Loan and lease losses		(1,003,907	)		(1,561,378	)		(806,330	)		(517,942	)		(119,692	)
Recoveries of loans previously charged off		129,433			84,791			48,263			40,311			37,316
Net loan and lease losses		(874,474	)		(1,476,587	)		(758,067	)		(477,631	)		(82,376	)
Provision for loan and lease losses		641,299			2,069,931			1,067,789			628,802			62,312
Economic reserve transfer		—			—			12,063			—			—
Allowance of assets sold		(296	)		(9,188	)		—			—			—
Allowance for loans transferred to held-for-sale		—			(1,904	)		—			(32,925	)		—
Allowance for loan and lease losses, end of period	$	1,249,008		$	1,482,479		$	900,227		$	578,442		$	272,068
Allowance for unfunded loan commitments and letters of credit, beginning of period	$	48,879		$	44,139		$	66,528		$	40,161		$	36,957
Acquired AULC		—			—			—			11,541			325
(Reduction in) Provision for unfunded loan commitments and letters of credit losses		(6,752	)		4,740			(10,326	)		14,826			2,879
Economic reserve transfer		—			—			(12,063	)		—			—
Allowance for unfunded loan commitments and letters of credit, end of period	$	42,127		$	48,879		$	44,139		$	66,528		$	40,161
Total allowance for credit losses	$	1,291,135		$	1,531,358		$	944,366		$	644,970		$	312,229
Allowance for loan and lease losses (ALLL) as % of:
Total loans and leases		3.28	%		4.03	%		2.19	%		1.44	%		1.04	%
Nonaccrual loans and leases (NALs)		161			77			60			181			189
Nonperforming assets (NPAs)		148			72			55			122			141
Total allowance for credit losses (ACL) as % of:
Total loans and leases		3.39	%		4.16	%		2.30	%		1.61	%		1.19	%
Nonaccrual loans and leases (NALs)		166			80			63			202			217
Nonperforming assets (NPAs)		153			74			58			136			161

19

Huntington Bancshares Incorporated
Annual Net Charge-Off Analysis
(Unaudited)

	Year Ended December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006
Net charge-offs by loan and lease type:
Commercial:
Commercial and industrial(1)(2)(3)(4)	$	254,932		$	487,606		$	526,165		$	345,840		$	20,868
Commercial real estate:
Construction		109,008			192,706			6,626			11,854			3,553
Commercial		166,554			490,025			62,114			27,250			3,230
Commercial real estate		275,562			682,731			68,740			39,104			6,783
Total commercial		530,494			1,170,337			594,905			384,944			27,651
Consumer:
Automobile loans and leases		26,572			56,332			54,565			27,692			18,775
Home equity(5)		139,373			106,176			67,556			34,426			21,854
Residential mortgage(6)(7)		152,895			110,202			21,247			11,371			4,505
Other loans		25,140			33,540			19,794			19,198			9,591
Total consumer		343,980			306,250			163,162			92,687			54,725
Total net charge-offs	$	874,474		$	1,476,587		$	758,067		$	477,631		$	82,376
Net charge-offs — annualized percentages:
Commercial:
Commercial and industrial’(1)(2)(3)(4)		2.05	%		3.71	%		3.87	%		3.25	%		0.28	%
Commercial real estate:
Construction		9.95			10.37			0.32			0.77			0.28
Commercial		2.72			6.71			0.81			0.52			0.10
Commercial real estate		3.81			7.46			0.71			0.57			0.15
Total commercial		2.70			5.25			2.55			2.21			0.23
Consumer:
Automobile loans and leases		0.54			1.59			1.21			0.67			0.46
Home equity(5)		1.84			1.40			0.91			0.56			0.44
Residential mortgage(6)(7)		3.42			2.43			0.42			0.23			0.10
Other loans		3.80			4.65			2.86			3.63			2.18
Total consumer		1.95			1.87			0.92			0.59			0.39
Net charge-offs as a % of average loans		2.35	%		3.82	%		1.85	%		1.44	%		0.32	%

(1)	2010 included net recoveries associated with the Franklin relationship totaling $5.1 million.
(2)	2009 included net charge-offs associated with the Franklin relationship totaling $114.5 million.
(3)	2008 included net charge-offs associated with the Franklin relationship totaling $423.3 million.
(4)	2007 included net charge-offs associated with the Franklin restructuring totaling $397.0 million. These net charge-offs were reduced by the unamortized discount with the loans and by other amounts received by Franklin totaling $88.5 million, resulting in net charge-offs totaling $308.5 million.
(5)	2010 included net charge-offs of $14.7 million associated with the transfer of Franklin-related loans to loans held for sale and $6.1 million of other Franklin-related net charge-offs.
(6)	2010 included net charge-offs of $60.8 million associated with the transfer of Franklin-related loans to loans held for sale and $10.5 million of other Franklin-related net charge-offs.
(7)	Effective in 2009, a change to accelerate the timing of when a partial charge-off is recognized was made. This change resulted in $32.0 million of charge-offs in 2009.

20

Huntington Bancshares Incorporated
Annual Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)
(Unaudited)

	December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006
Nonaccrual loans and leases (NALs):
Commercial and industrial (1)	$	346,720		$	578,414		$	932,648		$	87,679		$	58,393
Commercial real estate		363,692			935,812			445,717			148,467			37,947
Total residential mortgages (1)		45,010			362,630			98,951			59,557			32,527
Home equity		22,526			40,122			24,831			24,068			15,266
Total nonaccrual loans and leases		777,948			1,916,978			1,502,147			319,771			144,133
Other real estate, net:
Residential		31,649			71,427			63,058			60,804			47,898
Commercial		35,155			68,717			59,440			14,467			1,589
Total other real estate, net		66,804			140,144			122,498			75,271			49,487
Impaired loans held for sale (2)		—			969			12,001			73,481			—
Other NPAs (3)		—			—			—			4,379			—
Total nonperforming assets	$	844,752		$	2,058,091		$	1,636,646		$	472,902		$	193,620
Nonperforming Franklin assets:
Commercial	$	—		$	—		$	650,225		$	—		$	—
Residential mortgage		—			299,670			—			—			—
Home Equity		—			15,004			—			—			—
OREO		9,477			23,826			—			—			—
Total nonperforming Franklin assets	$	9,477		$	338,500		$	650,225		$	—		$	—
Nonaccrual loans and leases as a % of total loans and leases		2.04	%		5.21	%		3.66	%		0.80	%		0.55	%
NPA ratio (4)		2.21			5.57			3.97			1.18			0.74

	December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006
Nonperforming assets, beginning of period	$	2,058,091		$	1,636,646		$	472,902		$	193,620		$	117,155
New nonperforming assets		925,699			2,767,295			1,082,063			468,056			222,043
Franklin impact, net		(322,000	)		(311,726	)		650,225			—			—
Acquired nonperforming assets		—			—			—			144,492			33,843
Returns to accruing status		(370,798	)		(215,336	)		(42,161	)		(24,952	)		(43,999	)
Loan and lease losses		(640,146	)		(1,148,135	)		(202,249	)		(120,959	)		(45,648	)
OREO losses		(12,096	)		(62,665	)		(19,582	)		(5,795	)		(543	)
Payments		(652,912	)		(497,076	)		(194,692	)		(86,093	)		(59,469	)
Sales		(141,086	)		(110,912	)		(109,860	)		(95,467	)		(29,762	)
Nonperforming assets, end of period	$	844,752		$	2,058,091		$	1,636,646		$	472,902		$	193,620

(1)	Franklin loans were reported as commercial accruing restructured loans at December 31, 2007. At December 31, 2008, Franklin loans were reported as nonaccrual commercial and industrial loans. At December 31, 2009, nonaccrual Franklin loans were reported as residential mortgage loans, home equity loans, and OREO, reflecting the 2009 first quarter restructuring.
(2)	Represents impaired loans obtained from the Sky Financial acquisition. Held for sale loans are carried at the lower of cost or fair value less costs to sell.
(3)	Other NPAs represent certain investment securities backed by mortgage loans to borrowers with lower FICO scores.
(4)	Nonperforming assets divided by the sum of loans and leases, impaired loans held for sale, net other real estate, and other NPAs.

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Huntington Bancshares Incorporated
Annual Accruing Past Due Loans and Leases and Accruing Troubled Debt Restructured Loans
(Unaudited)

	December 31,
(dollar amounts in thousands)	2010			2009			2008			2007			2006
Accruing loans and leases past due 90 days or more:
Commercial and industrial	$	—		$	—		$	10,889		$	10,474		$	170
Commercial real estate		—			—			59,425			25,064			1,711
Residential mortgage (excluding loans guaranteed by the U.S. Government)		53,983			78,915			71,553			67,391			35,555
Home equity		23,497			53,343			29,039			24,086			13,423
Other loans and leases		10,177			13,400			18,039			13,962			6,650
Total, excl. loans guaranteed by the U.S. Government		87,657			145,658			188,945			140,977			57,509
Add: loans guaranteed by U.S. Government		98,288			101,616			82,576			51,174			31,308
Total accruing loans and leases past due 90 days or more, including loans guaranteed by the U.S. Government	$	185,945		$	247,274		$	271,521		$	192,151		$	88,817
Ratios:
Excluding loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.23	%		0.40	%		0.46	%		0.35	%		0.22	%
Guaranteed by U.S. Government, as a percent of total loans and leases		0.26	%		0.28	%		0.20	%		0.13	%		0.12	%
Including loans guaranteed by the U.S. Government, as a percent of total loans and leases		0.49	%		0.68	%		0.66	%		0.48	%		0.34	%
Accruing troubled debt restructured loans
Commercial	$	171,830		$	157,049		$	185,333		$	1,187,368		$	—
Total residential mortgages		313,020			219,639			82,857			32,005			7,496
Other		76,586			52,871			41,094			—			—
Total accruing troubled debt restructured loans	$	561,436		$	429,559		$	309,284		$	1,219,373		$	7,496

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