Unizan Financial (UNIZ) 8-K Unizan Financial Corp. Reports Third Quarter 2005 Financial Results

Exhibit 99.1

	NEWS RELEASE
FOR IMMEDIATE RELEASE
	Investor Contact: Roger L. Mann
	Unizan Financial Corp.
	President and Chief Executive Officer
	Telephone: 330.438.1118 or 1.866.235.7203
	E-mail address: rmann@unizan.com
	Media Contact: Sandy K. Upperman
	Unizan Financial Corp.
	Vice President, Corporate Communications
	Telephone: 330.438.4858
	E-mail address: supperman@unizan.com

UNIZAN FINANCIAL CORP. REPORTS THIRD QUARTER 2005 FINANCIAL RESULTS

CANTON, Ohio – October 21, 2005 – Unizan Financial Corp. (NASDAQ: UNIZ), today reported net income of $5.7 million for the quarter ended September 30, 2005, or $0.26 per diluted share, a 14% increase compared with net income of $5.0 million, or $0.23 per diluted share, for the second quarter of 2005 and a 98% increase compared with net income of $2.9 million, or $0.13 per diluted share, for the quarter ended September 30, 2004.

“Our third quarter results continue to reflect solid improvement in our net income during the first nine months of 2005,” said Roger L. Mann, Unizan Financial Corp. President and Chief Executive Officer. “I continue to be extremely pleased with the commitment demonstrated by our staff as we progress through the 2005 calendar year,” concluded Mann.

Net income for the nine months ended September 30, 2005 was $15.2 million, or $0.69 per diluted share, compared to $8.4 million, or $0.38 per diluted share, for the same period in 2004.

Net interest income -Net interest income was $16.9 million for the three months ended September 30, 2005, down 0.9% from the previous quarter and up 5.0% from the same quarter last year. The net interest margin was 3.05% for the third quarter of 2005 compared to 3.07% for the second quarter of 2005 and 2.75% for the third quarter of 2004 while average earning assets during the third quarter of 2005 declined 1.3% from the prior quarter and 5.7% from the year ago quarter.

Provision for loan losses –The provision for loan losses was $1.7 million for the three months ended September 30, 2005, compared to $1.4 million in the previous quarter and $3.8 million in the third quarter of 2004. The provision for the third quarter of 2004 was impacted by increases in non-performing and impaired loans as well as by higher loss factors being applied to certain loan types. Net charge-offs were $2.5 million for the third quarter of 2005 compared to $2.0 million in the previous quarter and $2.3 million in the year ago quarter. The increase in net charge-offs from the second quarter of 2005 was primarily attributed to one aircraft loan charge-off in the amount of $590 thousand. No aircraft loans were charged-off in the second quarter of 2005 or third quarter of 2004. The allowance for loan losses as a percentage of total loans was 1.40% at September 30, 2005 as compared to 1.41% at year end 2004 and 1.39% at September 30, 2004.

Other income -Other income was $8.7 million for the third quarter of 2005 compared with $7.1 million for the second quarter of 2005 and $7.2 million for the third quarter of 2004. Results for the third quarter of 2005 benefited from additional bank owned life insurance income attributed to death benefit claims totaling $836 thousand and an $800 thousand gain on the sale of agreements with merchant services customers. The third quarter 2004 results included a $488 thousand gain from the sale of the Company’s Wooster Financial Center.

Trust, financial planning, brokerage and insurance sale revenue decreased $368 thousand, or 15.8%, as compared to the prior quarter and increased $171 thousand, or 9.5%, as compared to the year ago quarter. The decrease from the previous quarter was mainly attributed to the seasonality of tax related fee income during the second quarter while the increase from a year ago mainly resulted from improved market conditions. Customer service fees, representing service charges on deposits and fees for other banking services, increased by $39 thousand, or 2.3%, from the second quarter of 2005 and decreased by $102 thousand, or 5.5%, from the third quarter of 2004. The increase compared to the prior quarter was mainly attributed to pricing changes for insufficient funds transactions while the decrease from the third quarter of 2004 continued to result from changes in consumer behavior as well as increases in earnings credits due to higher short term interest rates which offset business account service charges.

Gains on sales of loans totaled $1.3 million, compared with $1.1 million in the second quarter of 2005 and $1.0 million in the third quarter of 2004. During the third quarter of 2005, gains from the sale of the guaranteed portion of Small Business Administration (SBA) and other government guaranteed loans were $1.0 million, compared with $944 thousand of gains in the second quarter of 2005 and $898 thousand of gains in the third quarter of 2004.

Gains from the sale of residential mortgage loans in the third quarter of 2005 were $222 thousand on sales of loans totaling $18.4 million compared with $125 thousand of gains on the sale of $12.3 million of loans in the second quarter of 2005 and $110 thousand of gains on sales of $11.7 million of loans in the third quarter of 2004. The increase from the prior quarter resulted primarily from the seasonality of mortgage origination activity while the increase from the year ago quarter was mainly attributed to lower market interest rates for fixed rate loans in 2005.

There were no net security gains or losses in the third quarter of 2005 or the second quarter of 2005 compared to $60 thousand of losses in the third quarter of 2004. The net losses in the third quarter of 2004 resulted primarily from the sale of the Company’s equity securities portfolio.

Other expense - Other expense was $16.1 million for the three months ended September 30, 2005, up $606 thousand, or 3.9%, from the previous quarter and up $466 thousand, or 3.0%, from the same quarter a year ago. The increase from the previous quarter was primarily attributed to salaries and benefits expense which increased $233 thousand, due mainly to benefit and incentive costs, and other operating expenses which increased $330 thousand, due mainly to $230 of non credit related losses. The increase compared to the prior year quarter was primarily due to increases in accounting, legal and professional fees, offset in part by the recognition in the year ago quarter of $357 thousand for merger related severance and benefit accruals. Accounting, legal and other professional fees totaled $1.4 million, $1.6 million and $535 thousand for the quarters ended September 30, 2005, June 30, 2005 and September 30, 2004, respectively. Such costs for the September 2005 and June 2005 quarters were primarily attributed to filling staffing vacancies, outsourcing certain functions that were previously performed internally, and activities associated with reviewing, implementing and maintaining controls in accordance with provisions of Section 404 of the Sarbanes-Oxley Act of 2002. The September 2004 quarter included $119 thousand of merger related legal and professional fees as compared to minimal amounts in the 2005 quarters.

Provision for income taxes -The effective tax rate for the three months ended September 30, 2005 was 26.9% compared to 30.1% in the previous quarter and 26.3% for the same quarter last year. The decrease in the effective tax rate as compared to the prior quarter was a result of tax exempt income, primarily earnings on bank owned life insurance, representing a relatively greater portion of pre-tax earnings.

Balance sheet -Total assets at September 30, 2005 were $2.46 billion compared to $2.57 billion at the end of 2004 and $2.59 billion a year ago. Compared to a year ago, loans decreased by $153.3 million, or 8.1%, which continues to be primarily attributed to the closing of the aircraft lending centers, less emphasis being placed on indirect consumer lending, competitive factors involving rate and structure and a reduction in lending staff in areas where there is significant market overlap with Huntington Bancshares Incorporated (“Huntington” – see Pending Merger below). Total deposits decreased by $50.4 million, or 2.7%, from the end of 2004 and by $27.4 million, or 1.5%, from a year ago while total borrowings have declined by $71.1 million from year end 2004 and by $116.1 million from a year ago.

Asset quality –At September 30, 2005, non-performing loans were $29.5 million, or 1.69% of total loans, compared to $30.2 million, or 1.61% of total loans, at December 31, 2004 and $29.2 million, or 1.53% of total loans, at September 30, 2004. Delinquent loans to total loans declined to 1.46% at September 30, 2005 compared to 1.60% at both December 31, 2004 and September 30, 2004.

Non-performing loans, excluding the portion of the loans guaranteed by the government, were $22.9 million at September 30, 2005 compared to $22.9 million at December 31, 2004 and $22.2 million at September 30, 2004.

Pending Merger

On October 6, 2005, Huntington announced that the Office of the Comptroller of the Currency has lifted its formal written agreement dated February 28, 2005 with The Huntington National Bank. Huntington also announced that, although the Federal Reserve written agreements remain in effect, Huntington intends to proceed with the filing of the application to acquire the Company. As announced November 12, 2004, the Company and Huntington entered into an amendment to their January 26, 2004 merger agreement extending the term of the agreement for one year from January 27, 2005 to January 27, 2006.

About Unizan

Unizan Financial Corp., a $2.5 billion holding company, is a financial services organization headquartered in Canton, Ohio. The company operates 42 full-service retail financial centers in five metropolitan markets in Ohio – Canton, Columbus, Dayton, Newark and Zanesville. Through Unizan Financial Corp.’s subsidiaries, Unizan Bank, National Association; Unizan Financial Services Group, National Association; Unizan Banc Financial Services, Inc.; and Unizan Financial Advisors, Inc., the company offers its client base corporate and retail banking, internet banking and wealth management products and services. Additionally, the company operates government guaranteed loan programs through its business lending centers in Cincinnati, Cleveland, Columbus and Dayton, Ohio; Detroit, Michigan; Mt. Arlington, New Jersey and Indianapolis, Indiana. For more information on Unizan Financial Corp. and its subsidiaries, visit the company on the Web at www.unizan.com.

Unizan Financial Corp.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

	2005 3rd Qtr			2005 2nd Qtr		2005 1st Qtr		2004 4th Qtr		2004 3rd Qtr
EARNINGS
Net Interest Income FTE (1)	$	17,197		17,350		17,056		17,510		16,400
Provision for loan losses		1,650		1,429		1,295		1,425		3,750
Other income		8,666		7,064		7,004		6,836		7,281
Security gains/(losses), net		—		—		—		(3,348	)	(60	)
Other expenses		16,149		15,543		16,147		15,048		15,683
FTE adjustment (1)		278		283		283		279		280
Net income	$	5,695		5,003		4,533		3,274		2,879
Net income per share - diluted	$	0.26		0.23		0.20		0.15		0.13
PERFORMANCE RATIOS
Return on average assets (ROA)		0.91	%	0.80	%	0.73	%	0.50	%	0.44	%
Return on average common equity (ROE)		7.06	%	6.34	%	5.84	%	4.16	%	3.71	%
Tangible return on average tangible assets (2)		1.02	%	0.91	%	0.83	%	0.60	%	0.55	%
Tangible return on avg. tangible common equity (2)		11.31	%	10.35	%	9.67	%	7.20	%	6.85	%
Net interest margin FTE (1)		3.05	%	3.07	%	3.02	%	2.97	%	2.75	%
Efficiency ratio (3)		59.99	%	61.07	%	64.41	%	58.86	%	62.03	%
MARKET DATA
Book value/common share	$	14.44		14.34		14.16		14.17		14.06
Tangible book value/common share		9.67		9.54		9.33		9.29		9.16
Period-end common share mkt value		24.21		26.79		26.00		26.35		27.61
Market as a % of book		167.6	%	186.8	%	183.6	%	186.0	%	196.4	%
Cash dividends/common share	$	0.135		0.135		0.135		0.135		0.135
Common stock dividend payout ratio		52.4	%	59.7	%	65.8	%	91.0	%	103.3	%
Average basic common shares		22,150,784		22,104,216		22,088,798		22,066,952		21,910,942
Average diluted common shares		22,263,301		22,225,063		22,200,120		22,211,146		22,052,059
Period end common shares		22,122,286		22,119,382		22,098,482		22,017,113		22,059,010
Common stock market capitalization	$	535,581		592,578		574,561		580,151		609,049
ASSET QUALITY
Gross charge-offs	$	3,480		3,164		2,558		7,194		2,952
Net charge-offs		2,496		2,024		1,782		5,095		2,285
Delinquency Ratio		1.46	%	1.32	%	1.38	%	1.60	%	1.60	%
Allowance for loan losses	$	24,426		25,273		25,868		26,356		26,387
Non-accrual loans		29,535		30,341		29,423		28,294		26,628
Past due 90 days or more & accruing		6		387		726		1,856		2,546
Other assets owned		2,619		2,133		1,604		2,612		2,254
Nonperforming assets (NPAs)		32,160		32,861		31,753		32,762		31,428
Restructured loans		5,247		5,302		5,339		2,430		2,461
Net charge-off ratio		0.57	%	0.45	%	0.39	%	1.08	%	0.47	%
Allowance/loans		1.40	%	1.42	%	1.42	%	1.41	%	1.39	%
NPL to loans		1.69	%	1.72	%	1.65	%	1.61	%	1.53	%
NPA to loans + other assets		1.84	%	1.84	%	1.74	%	1.75	%	1.65	%
Allowance to NPLs		82.69	%	82.25	%	85.80	%	87.42	%	90.45	%
AVERAGE BALANCES
Assets	$	2,470,685		2,497,436		2,518,865		2,579,517		2,615,839
Deposits		1,810,309		1,822,754		1,817,157		1,820,310		1,845,818
Loans		1,765,161		1,797,618		1,830,693		1,883,193		1,935,094
Earning assets		2,239,808		2,269,382		2,291,068		2,349,292		2,376,178
Shareholders’ equity		320,130		316,386		314,984		313,231		308,618
ENDING BALANCES
Assets	$	2,459,931		2,488,137		2,517,941		2,572,834		2,593,502
Deposits		1,790,330		1,829,003		1,825,307		1,840,726		1,817,768
Loans		1,749,811		1,783,708		1,823,202		1,874,393		1,903,102
Goodwill and other intangible assets		105,527		106,161		106,794		107,444		108,128
Earning assets		2,222,274		2,251,245		2,292,673		2,340,268		2,351,402
Total shareholders’ equity		319,482		317,175		312,870		311,925		310,186

(1)	-	FTE defined as fully tax-equivalent
(2)	-	Net income adjusted for amortization of intangibles, after tax, divided by average total assets or average total equity, as applicable, reduced by average goodwill and other intangibles.
(3)	-	Excludes amortization of intangibles. Fourth quarter 2004 excludes $246 pre-tax merger relted professional fees and severance accruals. Third quarter 2004 excludes $488 pre-tax gain on sale of Wooster Financial Center and $476 pre-tax merger related professional fees and severance accruals.

Certain previously reported amounts may have been reclassified to conform to current reporting presentation.

Unizan Financial Corp.

CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

	9/30/05			6/30/05			3/31/05			12/31/04			09/30/04
ASSETS
Federal funds sold and interest bearing deposits with banks	$	7,843		$	6,040		$	13,149		$	7,139		$	8,408
Securities, net		427,149			424,481			419,750			422,566			404,104
Federal Home Loan Bank stock, at cost		37,471			37,016			36,572			36,170			35,788
Loans originated and held for sale		2,385			3,988			2,066			1,256			2,353
Loans:
Commercial, financial and agricultural		220,980			225,747			236,062			268,339			266,262
Aircraft		76,440			83,342			93,527			106,845			117,497
Commercial real estate		593,322			597,409			610,945			607,470			610,061
Residential real estate		421,066			431,219			437,819			439,866			441,338
Consumer		435,618			442,003			442,783			450,617			465,591
Total Loans less unearned income		1,747,426			1,779,720			1,821,136			1,873,137			1,900,749
Less allowance for loan losses		24,426			25,273			25,868			26,356			26,387
Net loans		1,723,000			1,754,447			1,795,268			1,846,781			1,874,362
Total earning assets		2,222,274			2,251,245			2,292,673			2,340,268			2,351,402
Cash and cash equivalents		57,232			55,965			45,347			52,057			61,072
Premises and equipment, net		21,719			21,818			22,111			22,226			22,787
Goodwill		91,971			91,971			91,971			91,971			91,971
Other intangible assets		13,556			14,190			14,823			15,473			16,157
Accrued interest receivable and other assets		77,605			78,221			76,884			77,195			76,500
Total Assets	$	2,459,931		$	2,488,137		$	2,517,941		$	2,572,834		$	2,593,502
LIABILITIES
Deposits:
Non-interest bearing deposits	$	219,659		$	213,026		$	209,872		$	231,004		$	213,621
Demand - interest bearing		185,664			196,842			202,651			219,249			229,938
Savings and money market		517,668			527,784			528,266			526,972			517,295
Certificates and other time deposits		867,339			891,351			884,518			863,501			856,914
Total deposits		1,790,330			1,829,003			1,825,307			1,840,726			1,817,768
Total borrowings		323,293			316,261			353,791			394,373			439,400
Accrued taxes, expenses and other liabilities		26,826			25,698			25,973			25,810			26,148
Total Liabilities		2,140,449			2,170,962			2,205,071			2,260,909			2,283,316
SHAREHOLDERS’ EQUITY
Common stock, $1.00 stated value		22,173			22,123			22,123			22,123			22,123
Paid-in capital		221,570			220,537			220,669			220,741			221,141
Retained earnings		81,125			78,423			76,405			74,854			74,560
Stock held by deferred compensation plan		(2,183	)		(2,189	)		(2,243	)		(2,279	)		(2,112	)
Treasury stock, at cost		(15	)		(92	)		(646	)		(1,137	)		(1,647	)
Accumulated other comprehensive loss		(3,188	)		(1,627	)		(3,438	)		(2,377	)		(3,879	)
Total Shareholders’ Equity		319,482			317,175			312,870			311,925			310,186
Total Liabilities and Shareholders’ Equity	$	2,459,931		$	2,488,137		$	2,517,941		$	2,572,834		$	2,593,502

Unizan Financial Corp.

COMPARATIVE STATEMENTS OF INCOME

(In thousands except share and per share data)

	Three months ended
	9/30/05		6/30/05		3/31/05		12/31/04			09/30/04
Interest income:
Interest on federal funds sold and interest bearing deposits with banks	$	87	$	95	$	71	$	25		$	21
Interest and dividends on securities		4,420		4,202		3,868		3,742			3,040
Interest and fees on loans and loans held for sale		28,092		27,478		26,889		27,452			26,693
Total interest income		32,599		31,775		30,828		31,219			29,754
Interest expense:
Interest on deposits		11,658		10,762		9,920		9,392			9,058
Interest on borrowings		4,022		3,946		4,135		4,596			4,576
Total interest expense		15,680		14,708		14,055		13,988			13,634
Net interest income		16,919		17,067		16,773		17,231			16,120
Provision for loan losses		1,650		1,429		1,295		1,425			3,750
Net interest income after provision for loan losses		15,269		15,638		15,478		15,806			12,370
Other income:
Trust, financial planning, brokerage and insurance sales		1,964		2,332		2,247		2,065			1,793
Customer service fees		1,752		1,713		1,579		1,784			1,854
Gains on sale of loans		1,267		1,069		1,187		1,117			1,008
Security gains/(losses), net		—		—		—		(3,348	)		(60	)
Other operating income		3,683		1,950		1,991		1,870			2,626
Total other income		8,666		7,064		7,004		3,488			7,221
Other expense:
Salaries, wages, pension and benefits		7,850		7,617		7,988		6,489			8,211
Occupancy expense		872		831		908		802			875
Furniture and equipment expense		516		486		503		533			520
Taxes other than income taxes		659		687		679		510			557
Intangible amortization expense		634		634		650		684			868
Other operating expense		5,618		5,288		5,419		6,030			4,652
Total other expense		16,149		15,543		16,147		15,048			15,683
Income before income taxes		7,786		7,159		6,335		4,246			3,908
Provision for income taxes		2,091		2,156		1,802		972			1,029
Net Income	$	5,695	$	5,003	$	4,533	$	3,274		$	2,879
Earnings per share:
Basic	$	0.26	$	0.23	$	0.21	$	0.15		$	0.13
Diluted	$	0.26	$	0.23	$	0.20	$	0.15		$	0.13
Dividends per share	$	0.135	$	0.135	$	0.135	$	0.135		$	0.135
Weighted average number of shares:
Basic		22,150,784		22,104,216		22,088,798		22,066,952			21,910,942
Diluted		22,263,301		22,225,063		22,200,120		22,211,146			22,052,059

NOTE : Per share data is based on the weighted average number of shares outstanding adjusted for stock dividends or splits calculated under the treasury method.

Unizan Financial Corp.

COMPARATIVE STATEMENTS OF INCOME

(In thousands except share and per share data)

	Year to Date
	9/30/2005		9/30/2004
Interest income:
Interest on federal funds sold and interest bearing deposits with banks	$	253	$	42
Interest and dividends on securities		12,490		11,906
Interest and fees on loans and loans held for sale		82,459		81,940
Total interest income		95,202		93,888
Interest expense:
Interest on deposits		32,340		27,024
Interest on borrowings		12,103		13,279
Total interest expense		44,443		40,303
Net interest income		50,759		53,585
Provision for loan losses		4,374		7,700
Net interest income after provision for loan losses		46,385		45,885
Other income:
Trust, financial planning, brokerage and insurance sales		6,543		5,796
Customer service fees		5,044		5,546
Gains on sale of loans		3,523		2,939
Security gains, net		—		192
Other operating income		7,624		6,946
Total other income		22,734		21,419
Other expense:
Salaries, wages, pension and benefits		23,455		31,479
Occupancy expense		2,611		2,537
Furniture and equipment expense		1,505		1,627
Taxes other than income taxes		2,025		1,797
Intangible amortization expense		1,917		2,504
Other operating expense		16,326		15,687
Total other expense		47,839		55,631
Income before income taxes		21,280		11,673
Provision for income taxes		6,049		3,251
Net Income	$	15,231	$	8,422
Earnings per share:
Basic	$	0.69	$	0.39
Diluted	$	0.69	$	0.38
Dividends per share	$	0.405	$	0.405
Weighted average number of shares:
Basic		22,114,826		21,805,547
Diluted		22,229,672		22,005,003

NOTE: Per share data is based on the weighted average number of shares outstanding adjusted for stock dividends or splits calculated under the treasury method.

Unizan Financial Corp.

Average Balance Sheet and Related Yields

	Three Months Ended September 30,														Nine Months Ended September 30,
	2005							2004							2005							2004
(dollars in thousands)	Average Balance			Income/ Expense		Rate (1)		Average Balance			Income/ Expense		Rate (1)		Average Balance			Income/ Expense		Rate (1)		Average Balance			Income/ Expense		Rate (1)
Interest-earning assets
Interest bearing deposits and federal funds sold	$	10,076		$	87	3.43	%	$	9,113		$	21	0.92	%	$	13,399		$	253	2.52	%	$	6,535		$	42	0.86	%
Securities		464,571			4,686	4.00			431,971			3,309	3.05			455,582			13,297	3.90			480,472			12,703	3.53
Total loans (2)		1,765,161			28,104	6.32			1,935,094			26,704	5.49			1,797,584			82,497	6.14			1,956,844			81,978	5.60
Total interest-earning assets (3)		2,239,808			32,877	5.82			2,376,178			30,034	5.03			2,266,565			96,047	5.67			2,443,851			94,723	5.18
Nonearning assets:
Cash and due from banks		51,435							58,010							50,347							58,164
Other nonearning assets		204,278							206,434							204,075							208,312
Allowance for loan losses		(24,836	)						(24,783	)						(25,503	)						(24,607	)
Total assets	$	2,470,685						$	2,615,839						$	2,495,484						$	2,685,720
Interest bearing liabilities:
Demand deposits	$	185,831		$	377	0.80	%	$	231,466		$	308	0.53	%	$	197,610		$	1,069	0.72	%	$	245,507		$	997	0.54	%
Savings deposits		526,153			3,468	2.62			505,279			1,561	1.23			525,217			8,904	2.27			513,807			4,058	1.05
Time deposits		884,591			7,813	3.50			886,615			7,189	3.23			879,646			22,367	3.40			920,700			21,969	3.19
Total deposits		1,596,575			11,658	2.90			1,623,360			9,058	2.22			1,602,473			32,340	2.70			1,680,014			27,024	2.15
Subordinated note		20,619			504	9.70			20,619			505	9.74			20,619			1,514	9.82			20,619			1,514	9.81
Other borrowings		294,922			3,518	4.73			418,646			4,071	3.87			316,868			10,589	4.47			436,032			11,765	3.60
Total borrowings		315,541			4,022	5.06			439,265			4,576	4.14			337,487			12,103	4.79			456,651			13,279	3.88
Total interest bearing liabilities		1,912,116			15,680	3.25			2,062,625			13,634	2.63			1,939,960			44,443	3.06			2,136,665			40,303	2.52
Noninterest bearing liabilities:
Demand deposits		213,734							222,458							214,242							218,612
Other liabilities		24,705							22,138							24,099							23,554
Shareholders’ equity		320,130							308,618							317,183							306,889
Total liabilities and equity	$	2,470,685						$	2,615,839						$	2,495,484						$	2,685,720
Net interest income and interest rate spread (3)				$	17,197	2.57	%				$	16,400	2.40	%				$	51,604	2.61	%				$	54,420	2.66	%
Net interest margin (4)						3.05	%						2.75	%						3.04	%						2.97	%

(1) Calculated on an annualized basis.

(2) Loan fees are included in interest income on loans.

(3) Interest income is computed on a fully tax equivalent (FTE) basis, using a tax rate of 35%.

(4) The net interest margin represents net interest income as a percentage of average interest-earning assets.

Unizan Financial Corp.

NONPERFORMING AND UNDERPERFORMING ASSETS

(dollars in thousands)

	9/30/05			6/30/05			3/31/05			12/31/04			09/30/04
Non-performing loans:
Commercial	$	2,029		$	3,284		$	1,588		$	1,689		$	1,683
Commercial real estate		4,642			5,255			6,477			6,453			5,620
Government guaranteed		8,862			8,559			8,690			9,266			9,438
Aircraft		2,085			2,734			2,950			2,826			2,450
Residential real estate		10,064			9,214			8,931			8,375			8,577
Direct installment loans		47			30			28			111			63
Indirect installment loans		2			6			67			204			160
Home equity		1,810			1,646			1,418			1,226			1,183
Total non-performing loans		29,541			30,728			30,149			30,150			29,174
Less: Government guaranteed amount		6,601			6,483			6,739			7,294			7,023
Total non-performing loans excluding government guaranteed amount	$	22,940		$	24,245		$	23,410		$	22,856		$	22,151
Total non-performing loans	$	29,541		$	30,728		$	30,149		$	30,150		$	29,174
Other assets owned		2,619			2,133			1,604			2,612			2,254
Total non-performing assets		32,160			32,861			31,753			32,762			31,428
Less: Government guaranteed amount		6,948			6,829			7,085			7,976			7,759
Total non-performing assets excluding government guaranteed amount	$	25,212		$	26,032		$	24,668		$	24,786		$	23,669
Restructured loans	$	5,247		$	5,302		$	5,339		$	2,430		$	2,461
Ratio of:
Non-performing loans to total loans		1.69	%		1.72	%		1.65	%		1.61	%		1.53	%
Non-performing assets to total assets		1.31	%		1.32	%		1.26	%		1.27	%		1.21	%
Non-performing assets to total loans + other assets		1.84	%		1.84	%		1.74	%		1.75	%		1.65	%
Allowance to total loans		1.40	%		1.42	%		1.42	%		1.41	%		1.39	%
Allowance to non-performing loans		82.69	%		82.25	%		85.80	%		87.42	%		90.45	%
Ratio of (excluding government guaranteed amount):
Non-performing loans to total loans		1.31	%		1.36	%		1.29	%		1.22	%		1.17	%
Non-performing assets to total assets		1.02	%		1.05	%		0.98	%		0.96	%		0.91	%
Non-performing assets to total loans + other assets		1.44	%		1.46	%		1.35	%		1.32	%		1.24	%
Allowance to non-performing loans		106.48	%		104.24	%		110.50	%		115.31	%		119.12	%
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES
Average loans and leases:
Commercial	$	142,061		$	149,892		$	159,226		$	187,149		$	195,561
Commercial real estate		597,232			605,529			607,789			607,848			636,693
Government guaranteed		74,238			73,627			75,817			72,949			64,643
Aircraft		80,808			87,516			100,834			111,681			121,690
Residential real estate		427,798			436,273			439,089			441,000			444,772
Indirect installment loans		84,309			88,535			93,285			101,154			108,903
Home equity		324,405			325,013			322,376			326,656			326,582
Other consumer		34,310			31,233			32,277			34,756			36,250
Total average loans and leases	$	1,765,161		$	1,797,618		$	1,830,693		$	1,883,193		$	1,935,094
Net charge-offs (recoveries):
Commercial	$	402		$	88		$	284		$	473		$	175
Commercial real estate		6			910			419			1,060			772
Government guaranteed		233			170			84			422			353
Aircraft		628			—			17			612			(47	)
Residential real estate		226			204			153			190			236
Indirect installment loans		347			271			542			1,191			416
Home equity		343			174			135			424			164
Other consumer		311			207			148			723			216
Total	$	2,496		$	2,024		$	1,782		$	5,095		$	2,285
Net charge-offs (recoveries) to average loans and leases (annualized):
Commercial		1.13	%		0.23	%		0.71	%		1.01	%		0.36	%
Commercial real estate		0.00	%		0.60	%		0.28	%		0.70	%		0.49	%
Government guaranteed		1.26	%		0.92	%		0.44	%		2.31	%		2.18	%
Aircraft		3.11	%		0.00	%		0.07	%		2.19	%		-0.15	%
Residential real estate		0.21	%		0.19	%		0.14	%		0.17	%		0.21	%
Indirect installment loans		1.65	%		1.22	%		2.32	%		4.71	%		1.53	%
Home equity		0.42	%		0.21	%		0.17	%		0.52	%		0.20	%
Other consumer		3.63	%		2.65	%		1.83	%		8.32	%		2.38	%
Total		0.57	%		0.45	%		0.39	%		1.08	%		0.47	%