Huntington Bancshares Inc., Columbus, Ohio, has announced that it expects to report a net loss of $239 million ($0.65 per share) for the fourth quarter, due largely to credit losses linked to Franklin Credit Management Corp., a specialist in servicing and resolving residential mortgage loans. Huntington said it will make a $406 million provision for credit losses related to the restructuring of loans to Franklin. It also reported, among other items, an expected $18 million reduction in net interest income and $64 million of market-related losses attributable partly to the hedging of mortgage servicing rights. "Though a negative this quarter, [the Franklin loans'] successful restructuring, we believe, addresses fully the current and anticipated financial performance issues associated with this relationship," said Thomas E. Hoaglin, chairman, president, and chief executive officer of Huntington. Earnings were also hurt by "continued weakness in commercial real estate markets," he said. The company can be found online at http://www.huntington.com.

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