Huntington Sees Wider Loss

Huntington Bancshares(HBAN Quote) 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 Quote). 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. ...