Huntington Sees Wider Loss

Huntington Bancshares(HBAN) was sliding to a 52-week low Thursday, after becoming the latest bank to warn it would post a fourth-quarter loss due to the subprime crisis and tight credit conditions.

The Columbus, Ohio-based bank said it expected a net loss of $239 million, or 65 cents a share, primarily due to a $276 million charge, disclosed Jan. 3, tied to its relationship with subprime lender Franklin Credit Management(FMCM). The bank is establishing a $406 million provision for credit losses due to exposure to bad mortgages and is reducing net interest income by $18 million.

Huntington also increased its provision for non-Franklin-related credit losses by $106 million, to bring its total provision for credit losses to $512 million for the quarter. The bank cited weakness in the commercial real estate market in eastern Michigan and northern Ohio for the $64 million increase in the non-Franklin provision. The regional bank also disclosed a $92 million, or 25 cents a share, in after-tax losses and charges related to loan and securities losses, merger costs and litigation, among other factors.

Analysts polled by Thomson Financial were expecting a loss of 21 cents a share. The bank is expected to report fourth-quarter results next Thursday.

Huntington shares slipped as low as $11.70 in Thursday morning trading. More recently, the bank's shares recently were trading down 5.7% to $12.48, 9 cents below its 52-week low.

Huntington's warning came on the same day credit card company Capital One(COF) said it expected full-year earnings of $3.97 a share, below its earlier expectation of $5 and analysts expectation of $4.86. The stock was down 5%.

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