-- Improved pre-tax, pre-provision income of $229.3 million, up $4.7

million, or 2%

-- $4.1 billion of loans originated or renewed: $1.9 billion

commercial, $2.2 billion consumer

-- 3.10% net interest margin, up 13 basis points

-- Significantly strengthened capital

-- $704.9 million of capital actions during the second quarter

-- 6.80% Tier 1 common risk-based capital ratio, up 116 basis points

-- 11.86% and 14.95% Tier 1 and Total capital ratios, respectively, up

70 basis points and 67 basis points, respectively

-- 5.68% tangible common equity ratio, up 103 basis points

-- Strengthened liquidity position

-- 17% annualized linked-quarter growth in average total core deposits

-- 98% period end loan-to-deposit ratio, down from 101% at March 31,

2009

-- $2.1 billion of cash and $3.2 billion in unpledged investment

securities, up from $0.8 billion and $1.4 billion, respectively, at

December 31, 2008

-- $8.0 billion borrowing capacity

-- Higher reserves

-- 2.51% period end allowance for credit losses, up from 2.24%

-- Second quarter review of every "noncriticized" commercial

relationship with an aggregate exposure of over $500,000 was

completed, contributing to higher provision for credit loss expense

Huntington Bancshares Incorporated (Nasdaq: HBAN; www.huntington.com) reported a 2009 second quarter net loss of $125.1 million, or $0.40 per common share. This compared with a net loss of $2,433.2 million, or $6.79 per common share in the 2009 first quarter, and net income of $101.4 million, or $0.25 per common share in the year-ago quarter.

For the first six months of 2009, Huntington reported a net loss of $2,558.3 million, or $6.47 per common share, compared with net income of $228.4 million, or $0.59 per common share in the comparable 2008 period.

PERFORMANCE OVERVIEW

"Despite the reported loss for the quarter, we continued to make steady progress in underlying financial performance," said Stephen D. Steinour, chairman, president, and chief executive officer. "Our pre-tax, pre-provision earnings were $229.3 million, up $4.7 million, or 2%, from the first quarter. This reflected a combination of positive factors key to improving our long-term financial performance. For example, average core deposits increased at an annualized 17% rate during the quarter. We also originated or renewed $4.1 billion of loans: $1.9 billion commercial and $2.2 billion consumer. Our net interest margin expanded 13 basis points to 3.10% as we began to realize the benefit of growth in core deposits and a more disciplined focus on deposit and loan pricing. We also saw good linked-quarter growth in service charges on deposits, trust income, and electronic banking fees. Further, our focus on controlling costs was evident as we saw a decline in personnel costs."

"However, the lead story for Huntington this past quarter was action taken to significantly strengthen our balance sheet, a prerequisite for achieving our long-term objective of consistent and sustainable earnings growth," he continued. "Strong liquidity, capital, and reserves are the most important elements of a fortress balance sheet. We made significant progress in all three during the second quarter."

Commenting on our proactive efforts regarding credit management, Steinour noted, "In the first quarter, we restructured our Franklin Credit relationship by taking ownership of the underlying residential mortgages and control of collections strategies and processes. This contributed to a 13% increase in cash collections in the second quarter compared with the first quarter. We also initiated ongoing monthly review and action plan meetings for our 'watch' and 'criticized' loans, and completed a concentrated review of our single family home builder and retail commercial real estate loan portfolios. And, we shared our intent to do a comprehensive portfolio review in the second quarter."

"During the second quarter, we reviewed every 'noncriticized' commercial relationship with an aggregate exposure of over $500,000. This review covered commercial and industrial, commercial real estate, and business banking loans, and included over 5,000 accounts representing over $13 billion in outstandings. The work we did was important in assessing existing and emerging credit issues in this challenging economy. This loan level visibility allows us to proactively mitigate risk going forward. While we continue to believe our commercial portfolio will remain under pressure, we remain confident that the risks in our loan portfolios are manageable."

"With regard to our consumer loan portfolio," he continued, "second quarter results again reflected good performance in our automobile loan and lease portfolio. Though we saw increases in net charge-offs and delinquencies in our residential mortgage portfolio, this was in line with expectations given the market environment. The home equity loss levels were higher in the quarter; yet, we saw a decline in early-stage delinquencies as we continued to focus on active loss mitigation strategies. We continue to believe our consumer loan portfolio will show better relative performance throughout this cycle.

"In light of our commercial loan portfolio review, it was prudent to continue to build reserves. Our provision for credit losses was $413.7 million, up $121.9 million, or 42%, from the first quarter, and exceeded net charge-offs by $79.3 million. As a result, our period-end allowance for credit losses increased to 2.51% from 2.24% at the end of the first quarter. It is also important to note that this quarter's credit performance was consistent with the early stages of the two-year cumulative loss assumptions used in our loan portfolio stress test analysis announced on May 20, 2009, when we targeted the amount of additional capital we felt would be needed to weather a stressed economic scenario through 2010."

Turning to capital, Steinour said, "Perhaps the most important achievement this past quarter was a significantly strengthened capital position as we executed $704.9 million of capital actions. These actions strengthened all of our period-end capital ratios. Our tangible common equity ratio increased to 5.68% from 4.65%, and our Tier 1 common risk-based capital ratio increased to 6.80% from 5.64%. Other capital ratios also increased significantly. Tier 1 and Total risk-based capital ratios at period end were 11.86% and 14.95%, respectively, up from 11.16% and 14.28%, respectively, from March 31, and well above the 6.0% and 10.0% 'well capitalized' regulatory thresholds.

"Our capital raising success reflected good support from investors of the actions we are taking to improve our longer-term prospects. We are especially pleased that our capital raising efforts this year were very efficient. Though we issued 55% more shares since the end of last year, the resulting pro forma dilution of this issuance to our tangible book value at the end of last year was only 3%. While we may continue to seek opportunities to further strengthen capital consistent with the overall target announced May 20, we believe Huntington has sufficient capital to weather a severe economic scenario similar to that used by the Federal Reserve in its modeling of capital sufficiency for the 19 large banks announced in May. Our actions also set the stage for eventual repayment of our $1.4 billion in TARP capital, though it would be premature to consider this in the near term given the economic uncertainty in our Midwest region."

"From a liquidity perspective, we have never been stronger," he continued. "During the first half of this year, we strengthened balance sheet liquidity as our available cash increased $1.3 billion, and our unpledged investment securities increased $1.8 billion. Further, the growth in core deposits reduced our reliance upon noncore funding. Our loan-to-deposit ratio improved to 98% at June 30, down from 101% at the end of first quarter, and from 108% a year ago. At the end of the quarter, we had $8.0 billion of FHLB and Federal Reserve borrowing capacity."

"Even while we are aggressively addressing the issues of today, it is important to prepare for the long term. As such, we launched our three-year strategic planning effort aimed at focusing on how to best realize our untapped opportunities. This exercise, expected to be completed in the fourth quarter, will define Huntington's long- term aspirations. So far, I like what I have seen and look forward to sharing more with you at the appropriate time," he concluded.

SECOND QUARTER PERFORMANCE DISCUSSION

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 one- time 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).

Specific significant items impacting 2009 second quarter performance included (see Table 1 below):

-- $67.4 million pre-tax gain ($0.10 per common share) on the tender of

trust preferred securities reflected in other noninterest expense.

-- $31.4 million pre-tax gain ($0.04 per common share) on the sale of Visa

(R) stock reflected in other noninterest income.

-- $0.06 per common share negative impact reflecting a deemed dividend

resulting from the conversion of 92,384 shares of Series A 8.50%

Non-cumulative Perpetual Convertible Preferred stock into common stock.

-- $23.6 million pre-tax ($0.03 per common share) negative impact due to a

special FDIC insurance premium assessment.

-- $4.2 million pre-tax ($0.01 per common share) negative impact from a

goodwill impairment charge related to the pending sale of a small

payments-related business.

Table 1 - Significant Items Impacting Earnings Performance Comparisons

Three Months Ended__ Impact (1)

---------

(in millions, except per share)__ Pre-tax__ EPS (2)

-------__ ------

June 30, 2009 - GAAP loss__ $(125.1) (2)__ $(0.40)

Gain on tender of trust preferred securities__ 67.4__ 0.10

Gain related to Visa(R) stock__ 31.4__ 0.04

Preferred stock conversion deemed dividend__ NA__ (0.06)

FDIC special assessment__ (23.6)__ (0.03)

Goodwill impairment__ (4.2)__ (0.01)

March 31, 2009 - GAAP loss__ $(2,433.2) (2)__ $(6.79)

Goodwill impairment__ (2,602.7)__ (7.09)

Preferred stock conversion deemed dividend__ NA__ (0.08)

Franklin restructuring__ 159.9 (2)__ 0.44

June 30, 2008 - GAAP earnings__ $101.4 (2)__ $0.25

Deferred tax valuation allowance benefit__ 3.4 (2)__ 0.01

Merger/restructuring costs__ (14.6)__ (0.03)

(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 performance metric that Management believes is useful in analyzing performance in times of economic stress is the level of earnings adjusted to exclude provision expense and certain other volatile items. (See Pre-tax, Pre-provision in Basis of Presentation for a full discussion).

Table 2 shows pre-tax, pre-provision income on an adjusted basis was $229.3 million in the second quarter, up 2% from the prior quarter.

Table 2 - Pre-tax, Pre-provision Income (1) - 2Q09 - 2Q08

2009__ 2008

-----------------__ -------------------------

Second__ First__ Fourth__ Third__ Second

(in millions)__ Quarter__ Quarter__ Quarter Quarter Quarter

-------------__ -------__ -------__ ------- ------- -------

(Loss) Income Before

Income Taxes__ $(137.8) $(2,685.0) $(669.2)__ $92.1__ $127.7

Add: Provision for credit

losses__ 413.7__ 291.8__ 722.6__ 125.4__ 120.8

Less: Securities gains

(losses)__ (7.3)__ 2.1__ (127.1)__ (73.8)__ 2.1

Add: Amortization of

intangibles__ 17.1__ 17.1__ 19.2__ 19.5__ 19.3

Less: Significant (1) items

Trust preferred gain__ 67.4__ -__ -__ -__ -

Goodwill impairment__ (4.2) (2,602.7)__ -__ -__ -

Gain related to Visa(R)

stock__ 31.4__ -__ -__ -__ -

FDIC special assessment__ (23.6)__ -__ -__ -__ -

Visa(R) anti-trust

indemnification__ -__ -__ 4.6__ -__ -

Merger/restructuring

costs__ -__ -__ -__ -__ (14.6)

------------------------__ ------__ ------__ ------__ ------__ -- ----

Pre-tax, Pre-provision

Income (1)__ $229.3__ $224.6__ $199.6__ $310.8__ $265.7

-----------------------__ ------__ ------__ ------__ ------__ --- ---

LQ Change - Amount__ $4.7__ $25.0 $(111.1)__ $45.0__ $31.3

LQ Change - Percent__ 2.1%__ 12.5%__ -35.8%__ 16.9%__ 13.3%

(1) See Basis of Presentation for definition

As discussed in the sections that follow, this improvement primarily reflected higher net interest income, service charges on deposits, and the benefit of lower personnel expenses, partially offset by lower brokerage and insurance income.

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

2009 Second Quarter versus 2009 First Quarter

Compared with the 2009 first quarter, fully-taxable equivalent net interest income increased $10.0 million, or 3%. This reflected a 13 basis point increase in the net interest margin to 3.10% from 2.97%. The increase in the net interest margin reflected a combination of factors including favorable impacts from strong core deposit growth, the benefit of lower deposit pricing, and the recognition of purchase accounting discounts from the payoff of Franklin loans partially offset by the negative impact of maintaining a higher liquidity position. Fully-taxable equivalent net interest income increased despite a 2% decline in average earning assets with average total loans and leases decreasing 5% and other earning assets, which includes investment securities, increasing 13%.

Table 3 details the decrease in average loans and leases.

Table 3 - Loans and Leases - 2Q09 vs. 1Q09

Second__ First

Quarter Quarter__ Change

------

(in billions)__ 2009__ 2009__ Amount__ %

-------------__ ----__ ----__ ------ ---

Average Loans and Leases

Commercial and industrial__ $13.5__ $13.5__ $(0.0) (0)%

Commercial real estate__ 9.2__ 10.1__ (0.9) (9)

----------------------__ ---__ ----__ ---- ---

Total commercial__ $22.7__ $23.7__ $(0.9) (4)%

----------------__ -----__ -----__ ----- ---

Automobile loans and leases__ 3.3__ 4.4__ (1.1) (24)

Home equity__ 7.6__ 7.6__ 0.1__ 1

Residential mortgage__ 4.7__ 4.6__ 0.0__ 1

Other consumer__ 0.7__ 0.7__ 0.0__ 4

--------------__ ---__ ---__ --- ---

Total consumer__ 16.3__ 17.2__ (0.9) (5)

--------------__ ----__ ----__ ---- ---

Total loans and leases__ $39.0__ $40.9__ $(1.9) (5)%

----------------------__ -----__ -----__ ----- ---

Average total loans and leases declined $1.9 billion, or 5%, primarily reflecting declines in total commercial real estate (CRE) and automobile loans and leases.

Average total commercial loans decreased $0.9 billion, or 4%. The decline in average CRE loans primarily reflected the reclassification process of CRE loans to commercial and industrial (C&I) loans completed late in the first quarter. The reclassification was primarily associated with loans to businesses secured by the real estate and buildings that house their operations. These owner-occupied loans secured by real estate were underwritten based on the cash flow of the business and are more appropriately classified as C&I loans. Also contributing to the decline were payoffs, balance reductions, and charge-offs. Average C&I loans were essentially unchanged, reflecting the benefit of the first quarter's CRE reclassification and new loan originations, offset almost entirely by payoffs and line reductions as well as the first quarter restructuring of the Franklin relationship which had the effect of reducing C&I loans and increasing residential mortgages and home equity loans.

Average total consumer loans declined $0.9 billion, or 5%. This decline was entirely attributable to the $1.1 billion, or 24%, decrease in average total automobile loans and leases. Average automobile loans declined $1.0 billion, reflecting the impact of a $1.0 billion automobile loan securitization at the end of the 2009 first quarter. Average automobile leases declined $0.1 billion, reflecting the continued runoff of the lease portfolio.

Average residential mortgages and home equity loans were essentially unchanged. The increase due to the first quarter reclassification of Franklin loans to these categories from C&I loans offset the negative impact of the sale of mortgage loans at the end of the first quarter. Though mortgage loan originations remained strong, as is our practice, we sold virtually all of our fixed-rate production in the secondary market. Demand for home equity loans remained weak, reflecting the impact of the economic environment and home values.

The 13% increase in average other earning assets reflected redeployment of the cash proceeds from the 2009 first quarter automobile loan securitization into investment securities, as well as the retention of a portion of the resulting securities. Average investment securities increased $0.9 billion from the prior quarter.

Our period-end liquidity position remained strong. At June 30, 2009, total cash and due from banks was $2.1 billion, down slightly from $2.3 billion at the end of the prior quarter as the cash proceeds from the automobile securitization were reinvested in investment securities. During the first half of this year, we strengthened balance sheet liquidity as our available cash increased $1.3 billion, and our unpledged investment securities increased $1.8 billion. At June 30, 2009, we had $8.0 billion of FHLB and Federal Reserve borrowing capacity.

Another metric indicating our improved liquidity position was a decline in our loan-to-deposit ratio. At June 30, 2009, our loan-to- deposit ratio was 98%, down from 101% at the end of the first quarter. Growth in core deposits contributed to this improvement.

Table 4 details the increase in average total deposits.

Table 4 - Deposits - 2Q09 vs. 1Q09

Second__ First

Quarter Quarter__ Change

------

(in billions)__ 2009__ 2009__ Amount__ %

-------------__ ----__ ----__ ------ ---

Average Deposits

Demand deposits - noninterest bearing__ $6.0__ $5.5__ $0.5__ 9%

Demand deposits - interest bearing__ 4.5__ 4.1__ 0.5__ 12

Money market deposits__ 6.4__ 5.6__ 0.8__ 14

Savings and other domestic deposits__ 5.0__ 5.0__ (0.0) (0)

Core certificates of deposit__ 12.5__ 12.8__ (0.3) (2)

----------------------------__ ----__ ----__ ---- ---

Total core deposits__ 34.5__ 33.0__ 1.4__ 4

Other deposits__ 5.1__ 5.2__ (0.1) (1)

--------------__ ---__ ---__ ---- ---

Total deposits__ $39.5__ $38.2__ $1.3__ 4%

--------------__ -----__ -----__ ---- ---

Average total deposits increased $1.3 billion, or 4% (14% annualized), from the prior quarter and reflected:

-- $1.4 billion, or 4%, growth in average total core deposits. The primary

drivers of this change were 14% growth in average money market deposits,

12% growth in interest bearing demand deposits, and 9% increase in

noninterest bearing demand deposits. Core certificates of deposit

declined 2%.

2009 Second Quarter versus 2008 Second Quarter

Fully-taxable equivalent net interest income decreased $44.4 million, or 11%, from the year-ago quarter. This primarily reflected the unfavorable impact of a 19 basis point decline in the net interest margin to 3.10% from 3.29%. Average earning assets also decreased $2.8 billion, or 6%, primarily reflecting a $2.0 billion, or 5%, decline in average total loans and leases.

Table 5 details the $2.0 billion decrease in average loans and leases.

Table 5 - Loans and Leases - 2Q09 vs. 2Q08

Second Quarter__ Change

--------------__ ------

(in billions)__ 2009__ 2008__ Amount__ %

-------------__ ----__ ----__ ------ ---

Average Loans and Leases

Commercial and industrial__ $13.5 $13.6__ $(0.1) (1)%

Commercial real estate__ 9.2__ 9.6__ (0.4) (4)

----------------------__ ---__ ---__ ---- ---

Total commercial__ $22.7 $23.2__ $(0.5) (2)%

----------------__ ----- -----__ ----- ---

Automobile loans and leases__ 3.3__ 4.6__ (1.3) (28)

Home equity__ 7.6__ 7.4__ 0.3__ 4

Residential mortgage__ 4.7__ 5.2__ (0.5) (10)

Other consumer__ 0.7__ 0.7__ (0.0) (0)

--------------__ ---__ ---__ ---- ---

Total consumer__ 16.3__ 17.8__ (1.5) (8)

--------------__ ---- ----__ ----__ ---

Total loans and leases__ $39.0 $41.0__ $(2.0) (5)%

----------------------__ ----- -----__ ----- ---

The $2.0 billion, or 5%, decrease in average total loans and leases reflected:

-- $1.5 billion, or 8%, decrease in average total consumer loans.