NEWSRELEASE [LOGO] HUNTINGTON BANKS FOR IMMEDIATE RELEASE For Further Information, Contact: Submitted: October 11, 1995 Jacqueline Thurston (614) 480-3878 HUNTINGTON BANCSHARES REPORTS 18% INCREASE IN THIRD QUARTER EARNINGS COLUMBUS, Ohio -- Huntington Bancshares Incorporated (NASDAQ: HBAN) today reported net income of $65.9 million, or $.48 per share, for the third quarter of 1995 compared with $55.9 million, or $.41 per share for the same period one year ago. For the first nine months of the year, net income was $179.0 million, or $1.29 per share versus $190.1 million, or $1.40 per share in the same period of 1994. Both return on average assets (ROA) and return on average equity (ROE) continued to be strong. ROA for the third quarter and first nine months of 1995 were 1.34% and 1.27%, respectively. ROE for the most recent quarter and first nine months of 1995 were 17.03% and 15.75%, respectively. "We are pleased with the results of the past quarter. It represents an 18.0% increase in earnings over the third quarter of last year and the third consecutive quarter in 1995 of reporting increased net income. This improvement follows the downturn in earnings experienced by Huntington and other banks in the industry during the second half of 1994," stated Frank Wobst chairman and chief executive officer of Huntington Bancshares Incorporated. "Huntington is benefiting from solid loan growth and lower non-interest expenses. These results are particularly pleasing in view of the continuing competitive marketplace." -More- Huntington's loan volume continued to be impressive during the third quarter with average total loans increasing 13.2% from the same period in 1994. Strong loan growth was experienced across the board with average commercial loans up 15.2%, consumer loans up 12.1% and lease financing up 30.1% from the third quarter one year ago. Net interest income during the recent quarter was $186.6 million, up from $183.6 million in the same period last year. The improvement in net interest income can be attributed to the higher level of earning assets which resulted from significant loan growth and a larger investment securities portfolio. The net interest margin in the third quarter was 4.18%, only 3 basis points less than the previous quarter. Huntington expects that the margin will continue to decline modestly in the fourth quarter primarily due to the purchase of additional investments, competitive pressure on loan pricing and changes in deposit mix. Non-interest income, excluding securities transactions, for the third quarter and first nine months of 1995 was $58.9 million and $171.3 million, compared with $53.1 million and $168.8 million for the corresponding periods one year ago. The quarter-to-quarter increase was driven by improvements in all major categories. As reported in the second quarter of this year, restructuring and other initiatives have stabilized the mortgage company and it is currently operating profitably. Non-interest expense in the third quarter of 1995 was $138.9 million representing an 8.3% drop from the same three months in 1994 and reflects the fourth consecutive quarter that non-interest expense has been reduced. Current quarter earnings were not impacted by the -More- reduction in the FDIC assessment rate and refund of amounts previously paid. This benefit was offset by Huntington's decision to accrue for costs associated with a likely higher assessment rate on SAIF deposits. A decline of 5.1% in non-interest expense occurred from the first nine months of 1994 to the corresponding period this year. The decreases were a direct result of initiatives begun in 1994 to reduce operating costs by restructuring certain business activities including the retail delivery system and the mortgage company. Moreover, these cost reductions were achieved despite the completion of three mergers during 1995 and were primarily attributable to reduced personnel costs. Huntington's asset quality measures remain among the best of the largest banking companies in the country. Non-performing loans declined to $46.3 million, or .34% of total loans, at September 30, 1995, compared with $53.9 million or .45% of total loans at the same time last year. Other real estate also declined over the past twelve months, from $51.6 million to $23.7 million. Non-performing assets as a percent of total loans and other real estate were .52% at the end of the most recent quarter, down significantly from .88% one year ago. Net charge-offs, as a percent of average total loans, were only .31% and .24%, respectively, during the third quarter and first nine months of 1995. Huntington's allowance for loan losses totaled $198.6 million at September 30, 1995, or 1.48% of total loans and represented 429% of non-performing loans; when combined with the allowance for other real estate, it was 263% of total non-performing assets. The company continues to enjoy strong capital levels. Huntington's average equity to average assets ratio was 7.87% for the third quarter and 8.10% for the first nine months of 1995. -More- The company's Tier I and total risk-based capital ratios were 8.46% and 12.17%, respectively, and its Tier I leverage ratio was 6.96% at September 30, 1995. Huntington's capital ratios continue to exceed the regulatory requirements to be considered a "well-capitalized" bank holding company. Huntington Bancshares is a regional bank holding company headquartered in Columbus, Ohio with assets in excess of $20 billion. The company's banking subsidiaries operate 327 offices in Ohio, Florida, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. Huntington's mortgage, trust, investment banking, and automobile finance subsidiaries manage 72 offices in the seven states mentioned as well as Georgia, Illinois, Maryland, New Jersey, North Carolina, Texas and Virginia. ### HUNTINGTON BANCSHARES INCORPORATED COMPARATIVE SUMMARY (CONSOLIDATED) (in thousands of dollars, except per share amounts)