Huntington Eliminates Problem Subprime Loans

COLUMBUS, Ohio (AP) — Regional bank Huntington Bancshares Inc. says it has cleared its books of troubled mortgages inherited through a merger.

Columbus, Ohio-based Huntington said Tuesday it has restructured its relationship with subprime mortgage lender Franklin Credit Management Corp. Franklin was tied to Sky Financial Group, which Huntington acquired in 2007.

Huntington has been digging its way out of $1.5 billion in problem loans from Franklin and says the restructuring eliminates the last batch, worth $615 million.

CEO Stephen Steinour says it's a very positive development for Huntington shareholders and will mean a one-time $160 million after-tax benefit.

The bank has more than 600 offices in Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia.