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Huntington Bancshares Incorporated Announces
Resolution of SEC Formal Investigation CONTACT:
COLUMBUS, Ohio -- June 2, 2005 -- Huntington
Bancshares Incorporated (Nasdaq: HBAN) (http://www.huntington.com)
announced that the five-member Securities and Exchange Commission
("Commission") approved the settlement of its previously
announced formal investigation into certain financial accounting
matters. As a part of the settlement, the Commission instituted
a cease and desist administrative proceeding and entered a cease
and desist order, as well as filed a civil action in federal district
court pursuant to which, without admitting or denying the allegations
in the complaint, Huntington, its chief executive officer, Thomas
Hoaglin, its former chief financial officer, Michael McMennamin,
and its former controller, John Van Fleet have consented to pay
civil money penalties. Huntington consented to pay a penalty of
$7.5 million, which may be distributed pursuant to the Fair Fund
provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002.
This civil money penalty has no current period financial impact
on Huntington's results, as reserves for this amount were established
and expensed in 2004. In the administrative proceeding, the Commission
charged that in its 2001 and 2002 fiscal years Huntington violated
Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 ("Securities
Act") and Sections 13(a) and 13(b)(2)(A) and (B) of the Securities
Exchange Act of 1934 ("Exchange Act"), and Exchange
Act Rules 12b-20 and 13a-1; that Hoaglin violated Exchange Act
Rule 13a-14 and caused Huntington's violations of Securities Act
Section 17(a)(2) and Exchange Act Sections 13(a) and 13(b)(2)(A)
and (B), and Exchange Act Rules 12b-20 and 13a-1 with respect
to fiscal year 2002; that McMennamin and Van Fleet violated Securities
Act Sections 17(a)(2) and 17(a)(3), Exchange Act Section 13(b)(5)
and Exchange Act Rule 13b2-1, and caused Huntington's violations
of Exchange Act Sections 13(a) and 13(b)(2)(A) and (B) and Exchange
Act Rules 12b-20 and 13a-1 in fiscal years 2001 and 2002; and
that McMennamin directly violated Exchange Act Rule 13a-14 in
2002. Without admitting or denying the charges in the administrative
proceeding, Huntington and the individuals each agreed to cease
and desist from committing and/or causing the violations charged
as well as any future violations of these provisions. Additionally,
Hoaglin, McMennamin, and Van Fleet agreed to pay disgorgement,
pre-judgment interest, and penalties in the amounts of $667,609,
$415,215, and $51,660, respectively. Van Fleet consented to a
suspension from appearing or practicing before the Commission
as an accountant for two years pursuant to Rule 102(e) of the
Commission's Rules of Practice. McMennamin consented to an undertaking
that he will not act as an officer or director of a public company
for five years. Hoaglin stated, "Huntington is pleased that
the SEC investigation is now concluded. We are a stronger company
as a result of substantive enhancements to our accounting controls,
and we continue our focus on growing our businesses and serving
our customers." Additional Information The Securities and Exchange Commission resolution
documents will be filed with the SEC as exhibits to Huntington's
Current Report on Form 8-K. The Form 8-K can be accessed at www.sec.gov
or on the investor relations page of Huntington's web site at
http://www.huntington.com. About Huntington Huntington Bancshares Incorporated is a $32 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has more than 139 years of serving the financial needs of its customers. Huntington provides innovative retail and commercial financial products and services through more than 300 regional banking offices in Indiana, Kentucky, Michigan, Ohio and West Virginia. Huntington also offers retail and commercial financial services online at huntington.com; through its technologically advanced, 24-hour telephone bank; and through its network of approximately 700 ATMs. Selected financial service activities are also conducted in other states including: Dealer Sales offices in Florida, Georgia, Tennessee, Pennsylvania, and Arizona; Private Financial Group offices in Florida; and Mortgage Banking offices in Florida, Maryland, and New Jersey. International banking services are made available through the headquarters office in Columbus and an office located in the Cayman Islands and an office located in Hong Kong. ### |
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®, Huntington®, and A bank invested in people®
are federally registered service marks of Huntington Bancshares Incorporated. © Huntington Bancshares Incorporated
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