Huntington Posts Mortgage-Linked 4Q Loss

Huntington Bancshares Inc., Columbus, Ohio, has reported a net loss of $239.3 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. A year earlier, Huntington reported earnings of $87.7 million ($0.37 per share). Huntington said it made a $405.8 million provision for credit losses in the fourth quarter related to the restructuring of loans to Franklin, along with $106.2 million for non-Franklin-related losses, much of which was attributed to continued weakness in commercial real estate markets. Thomas E. Hoaglin, chairman, president, and chief executive officer of Huntington, said the company "firmly" believes that the "reserves we have established and the positive cash flow coverage resulting from the restructuring address fully the current and anticipated financial performance issues associated with this relationship." The company can be found online at http://www.huntington.com.