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| Huntington Bancshares Restructures Ownership Interest in Huntington Merchant Services, L.L.C. |
Restructuring Will Result in Third Quarter 2002 Gain
COLUMBUS, Ohio, July 18 /PRNewswire-FirstCall/ -- Huntington Bancshares
Incorporated (Nasdaq: HBAN) ( http://www.huntington.com ) today announced the
restructuring of its interest in Huntington Merchant Services, L.L.C. (HMS),
the company's merchant services business, in a transaction with First Data
Merchant Services Corporation, a subsidiary of First Data Corp. (NYSE: FDC).
This transaction will result in an approximate $25 million pre-tax, non-
operating gain ($16 million after tax) in the third quarter of 2002.
Under the agreement, Huntington will extend its long-term merchant
services relationship with First Data. In addition, as part of the
transaction, First Data will obtain all of Huntington's Florida-related
merchant business and will have an increased equity interest in HMS.
Huntington will remain an equity owner. Specific terms of this transaction
were not disclosed. Going forward, this transaction is not expected to have a
material impact on Huntington's financial results. Outside of Florida, this
transaction does not impact customers or their relationship with HMS.
"As a result of the sale of our Florida banking operations, First Data
initiated discussions regarding our Florida merchant services business," said
Tom Hoaglin, Huntington's chairman, president and chief executive officer.
"This provided an opportunity to review our entire First Data merchant
services relationship. Consequently, we have extended the relationship with
First Data for 10 years. This assures our merchant clients of Huntington's
continued commitment to providing them the highest level of service and
attention. At the same time we have gained operating efficiencies by
refocusing on the merchant service business within our core operating
footprint."
"With this transaction, First Data deepens our commitment to and
participation in the Huntington Merchant Services business and our clients.
We anticipate continued long-term growth of this business," said Scott Betts,
president of First Data Merchant Services.
In connection with Huntington's sale of its Florida banking operations to
SunTrust Bank, SunTrust Merchant Services, a First Data merchant alliance,
will assume responsibility for the Florida-based merchants, allowing First
Data to continue directly servicing these merchants.
About Huntington
Huntington Bancshares Incorporated is a $25 billion regional bank holding
company headquartered in Columbus, Ohio. Through its affiliated companies,
Huntington has more than 136 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 http://www.huntington.com; through
its technologically advanced, 24-hour telephone bank; and through its network
of more than 900 ATMs. Selected financial service activities are also
conducted in other states including: Dealer Sales offices in Florida,
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 additional offices located in the Cayman Islands and
Hong Kong.
Huntington Forward-looking Statement
This press release contains certain forward-looking statements, including
certain plans, expectations, goals, and projections, which are subject to
numerous assumptions, risks, and uncertainties. A number of factors,
including but not limited to those set forth under the heading "Business
Risks" included in Item 1 of Huntington's Annual Report on Form 10-K for the
year ended December 31, 2001, and other factors described from time to time in
Huntington's other filings with the Securities and Exchange Commission, could
cause actual conditions, events, or results to differ significantly from those
described in the forward-looking statements. All forward-looking statements
included in this news release are based on information available at the time
of the release. Huntington assumes no obligation to update any forward-
looking statement.
SOURCE Huntington Bancshares Incorporated
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