SKY Financial 8K Group Reports First Quarter Results | SEC 20 Apr 05

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE


CONTACT:		Kevin T. Thompson
		Executive Vice President
		Chief Financial Officer
		(419) 254-6068

Sky Financial Group Reports First Quarter Results

April 20, 2005 - Bowling Green, Ohio - Sky Financial Group, Inc. (NASDAQ: SKYF) today reported first quarter net income of $31.5 million, or $.29 per diluted share, compared to $58.7 million, or $.62 per diluted share for the first quarter of 2004. Consistent with Sky’s previous announcement, the first quarter of 2005 included an increased provision for credit losses, which totaled $30.8 million compared to $6.7 million in the first quarter 2004. In addition, the first quarter last year included income from discontinued operations of $18.7 million, or $.20 per diluted share, due to a gain from Sky’s sale of its dental finance unit, Sky Financial Solutions (SFS). Annualized return on assets and return on equity for the first quarter were 0.86% and 8.72%, respectively, compared with 1.83% and 22.83%, respectively, for the same period in 2004.

“We are confident that Sky will return to strong performance levels in the second quarter 2005,” stated Marty E. Adams, president, chairman and chief executive officer. “While our results for the first quarter did not meet our performance goals, the higher credit losses, which lowered earnings, are not indicative of any systemic concern. We expect our ongoing performance to reflect the benefits from Sky’s characteristically strong credit underwriting and a renewed emphasis on expense management to supplement our revenue growth strategies.”

“In addition, we are particularly looking forward to adding the employees and clients of Belmont Bancorp to Sky and our Ohio Valley Region by completing our merger on June 1, 2005,” continued Mr. Adams.

Core operating earnings, which reflect net income adjusted to exclude discontinued operations and merger-related expenses that are not representative of ongoing operations, were $31.5 million for the first quarter, versus $40.2 million for the first quarter of 2004. Core operating earnings per diluted share for the first quarter were $.29, versus $.43 for the first quarter of 2004. For the first quarter, on a core operating earnings basis, annualized return on assets and return on equity were 0.86% and 8.72%, respectively, compared with 1.34% and 15.63%, respectively, for the same period in 2004.

Cash operating earnings, which reflect core operating earnings further adjusted to exclude the effects of amortization of intangibles, were $33.8 million, or $.31 per diluted share, in the first quarter compared to $41.4 million, or $.44 per diluted share in the first quarter of 2004. On a cash operating basis, the annualized return on average tangible equity was 14.46% for the first quarter compared with 20.64% for the same period in 2004.

First Quarter Results

Net interest income for the first quarter was $124.0 million, up 21.8% from $101.8 million in the first quarter of 2004. The net interest margin for the first quarter was 3.69%, up 1 basis point from both the fourth quarter and the first quarter of 2004. The net interest margin performance reflects the benefits from rising short-term interest rates despite the effects of increasingly competitive markets.

Average earning assets increased 22.7% over the first quarter of 2004 from a combination of organic growth and acquisitions. Average loans for the quarter increased 22.4% over 2004’s volume during the same quarter, with organic growth contributing 8.0% in addition to the acquisitions. Average deposits grew 20.1% over the first quarter of 2004, which included organic growth of 3.0% in addition to the acquisitions. Average non-interest bearing deposits, Sky’s highest growth priority, were up 27.3% for the first quarter compared to the first quarter of 2004, including organic growth of 12.2%.

Non-interest revenues were $51.5 million for the first quarter, up 18.6% from $43.4 million in the first quarter of 2004. Excluding mortgage banking and net securities transactions, non-interest revenues were up 23.1% in total and 9.1% excluding acquisitions with strong increases in several fee-based revenue sources compared to the same quarter in 2004. Trust services income was up 31.9%, service charges on deposits were up 26.2% and brokerage and insurance commissions were up 16.2%. Compared to the prior year quarter, mortgage banking revenues were up 5.7% mainly due to higher servicing income and the recapture of impairment reserves.

Non-interest expenses for the first quarter were $98.3 million compared to $78.5 million in the first quarter of 2004, which included $346 thousand of merger, integration and restructuring expenses. Expenses have increased over 2004’s first quarter mainly due to the acquisitions of Second Bancorp, Prospect Bancshares and two insurance agencies in 2004, along with the opening of six new financial centers over the last twelve months. The efficiency ratio, on a cash operating basis, excluding the merger, integration and restructuring expenses and amortization of intangible assets, was 53.73% for the quarter, compared to 52.20% for the same quarter in 2004.

Credit Quality

The provision for credit losses for the first quarter was $30.8 million, increasing from $6.7 million in the same quarter in 2004. The higher provision compared to the first quarter of 2004 was due to higher net charge-offs, primarily from two large commercial credits and the sale of a group of non-performing consumer loans. Net credit losses for the quarter were $31.7 million compared to $6.6 million for the first quarter of 2004. At March 31, 2005, non-performing loans to total loans was 1.18% versus 1.35% at year-end and 1.06% a year ago. The allowance for loan losses to non-performing loans at March 31, 2005, was 119% versus 105% at year-end and 138% at March 31, 2004. Non-performing loans continue to reflect the non-accrual status of loans with payments guaranteed by surety bonds or insurance policies issued by three insurance companies, which remain in litigation.

Continued Expansion

On December 20, 2004, Sky announced a definitive agreement to acquire Belmont Bancorp., and its wholly-owned subsidiary, Belmont National Bank (BNB). BNB, a $294 million commercial bank, operates twelve full-service branches located in Belmont, Harrison and Tuscarawas counties in Ohio and Ohio County in West Virginia. The merger is expected to close June 1, 2005, and upon completion, the combined companies will have approximately $15.3 billion in total assets and $10.7 billion in total deposits.

Outlook For 2005

Commenting on 2005, Kevin Thompson, chief financial officer stated, “Going forward, we expect Sky’s profitability to return to previous performance levels. Including our first quarter results at $.29 per diluted share and our pending acquisition of Belmont Bancorp., we currently project 2005 diluted earnings per share on a core operating basis, excluding merger-related expenses, of $1.69 to $1.72, and on a net income, or GAAP basis, of $1.68 to $1.71 per diluted share.

Conference Call

Today, April 20, 2005, at 3 p.m., Mr. Adams and Mr. Thompson will host a conference call to provide an overview of first quarter performance and business outlook. Participants are encouraged to call in beginning at 2:45 p.m. by dialing (800) 665-0430 (confirmation code: 5820342). R.S.V.P. is not required. The webcast can be accessed via the Investor Relations/Webcasts section (http://investor.skyfi.com/medialist.cfm) of the Sky website. A replay of the call will be available from 7 p.m., April 20, until midnight, April 25, by calling (888) 203-1112 (confirmation code: 5820342). The event will be archived on the Sky website indefinitely. For supplemental financial tables, please refer to the Investor Relations/Press Releases (http://investor.skyfi.com/releases.cfm) section on our website.

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. Sky believes that providing certain non-GAAP financial measures provides investors with information useful in understanding Sky’s financial performance, its performance trends and financial position. Specifically, Sky provides measures based on “core operating earnings,” which exclude merger-related expenses and discontinued operations that are not reflective of on-going operations or not expected to recur. In addition, Sky provides measures based on “cash operating earnings,” which further adjusts core operating earnings to exclude the effect of amortization of intangibles. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results. A reconciliation of these non-GAAP measures to the most comparable GAAP equivalent is included in the financial tables.

Forward-looking Statement

The information in this press release contains forward-looking statements including certain projections, plans and forecasts of expected future performance that are not historical facts and that are subject to a number of risks and uncertainties. Actual results and performance could differ materially from those contemplated or implied by these forward-looking statements. Factors that could cause actual results or experience to differ from results discussed in the forward-looking statements include, but are not limited to: economic conditions; material unforeseen changes in the financial condition or results of operations of Sky’s clients; adverse outcome in collections litigation; and other factors identified from time-to-time in Sky’s other public documents filed with the Securities and Exchange Commission. Sky undertakes no obligation to update or revise these statements following the date of this release.

About Sky Financial Group, Inc.

Sky Financial Group is a $15 billion diversified financial holding company with its headquarters located in Bowling Green, Ohio. Sky’s asset size places it among the 50 largest publicly-held bank holding companies in the nation. Sky operates over 280 financial centers and over 300 ATMs serving communities in Ohio, Pennsylvania, Michigan, Indiana and West Virginia. Sky’s financial service affiliates include: Sky Bank, commercial and retail banking; Sky Trust, asset management services; and Sky Insurance, retail and commercial insurance agency services. Sky is located on the web at www.skyfi.com.

Summary Financials - First Quarter 2005

SKY FINANCIAL GROUP, INC.

STATEMENTS OF INCOME (Unaudited)


*(Dollars in thousands,*	Three Months Ended March 31,				Percent Change
*except per share data)*	2005		2004		Percent Change
Interest income	$	191,594	$	149,021	28.6	%
Interest expense		67,587		47,218	43.1

Net interest income		124,007		101,803	21.8
Provision for credit losses		30,823		6,665	362.5

Net interest income after provision for credit losses		93,184		95,138	(2.1	)

Non-interest income
Trust services income		5,414		4,105	31.9
Service charges and fees on deposit accounts		12,173		9,642	26.2
Mortgage banking income		5,755		5,445	5.7
Brokerage and insurance commissions		16,630		14,308	16.2
Net securities gains (losses)		878		1,528	(42.5	)
Other income		10,621		8,381	26.7

Total non-interest income		51,471		43,409	18.6

Non-interest expenses
Salaries and employee benefits		52,348		44,648	17.2
Occupancy and equipment expense		17,604		12,874	36.7
Merger, integration and restructuring expense		—		346	(100.0	)
Other operating expenses		28,330		20,635	37.3

Total non-interest expense		98,282		78,503	25.2

Income from continuing operations before income taxes		46,373		60,044	(22.8	)
Income taxes from continuing operations		14,902		20,092	(25.8	)

Income from continuing operations		31,471		39,952	(21.2	)
Income from discontinued operations, net of tax		—		18,725	(100.0	)

Net income	$	31,471	$	58,677	(46.4	)


SHARE DATA:

Earnings per share from continuing operations
Basic	$	0.30	$	0.43	(30.2	)%
Diluted		0.29		0.42	(31.0	)

Earnings per share from discontinued operations
Basic		0.00		0.20	(100.0	)
Diluted		0.00		0.20	(100.0	)

Earnings per share
Basic		0.30		0.63	(52.4	)
Diluted		0.29		0.62	(53.2	)

Core operating earnings per share*
Basic		0.30		0.43	(30.2	)
Diluted		0.29		0.43	(32.6	)

Cash operating earnings per share*
Basic		0.32		0.44	(27.3	)
Diluted		0.31		0.44	(29.5	)
Cash dividend declared per common share		0.22		0.21	—
Average shares outstanding
Basic		106,330,000		92,957,000	—
Diluted		107,591,000		94,226,000	—

Summary Financials – First Quarter 2005

PERFORMANCE RATIOS:


	Three Months Ended March 31,
	2005			2004
ACTUAL
Return on average equity		8.72	%		22.83	%
Return on average assets		0.86			1.83

CONTINUING OPERATIONS
Return on average equity		8.72	%		15.55	%
Return on average assets		0.86			1.34
Efficiency ratio		55.75			53.75
Net interest margin (FTE)		3.69			3.69

CORE OPERATING *
Core operating earnings	$	31,471		$	40,177
Return on average equity		8.72	%		15.63	%
Return on average assets		0.86			1.34
Efficiency ratio		55.75			53.51

CASH OPERATING*
Return on average tangible equity		14.46	%		20.64	%
Return on average tangible assets		0.95			1.41
Efficiency ratio		53.73			52.20

ACTUAL BALANCE SHEETS (Unaudited)

(Dollars in thousands)


	March 31,						Percent Change
	2005			2004			Percent Change
Cash and due from banks	$	217,333		$	200,783		8.2	%
Interest-earning deposits with banks		27,696			29,051		(4.7	)
Loans held for sale		27,946			57,650		(51.5	)
Securities available for sale		3,063,145			2,613,816		17.2
Total loans		10,662,957			8,555,651		24.6
Allowance for loan losses		(150,122	)		(125,043	)	20.1

Net loans		10,512,835			8,430,608		24.7
Premises and equipment		156,829			152,621		2.8
Goodwill and other intangibles		539,678			243,356		121.8
Assets of discontinued operations		—			—		—
Other assets		432,350			365,506		18.3

Total Assets	$	14,977,812		$	12,093,391		23.9

Total interest-earning assets	$	13,781,744		$	11,256,168		22.4

Non-interest-bearing deposits	$	1,557,454		$	1,229,981		26.6
Interest-bearing deposits		8,883,838			7,541,365		17.8

Total deposits		10,441,292			8,771,346		19.0
Repos and federal funds purchased		942,150			931,792		1.1
Debt and FHLB advances		2,043,946			1,156,419		76.7
Liabilities of discontinued operations		—			—		—
Other liabilities		143,648			167,677		(14.3	)
Shareholders’ equity		1,406,776			1,066,157		31.9

Total Liabilities and Shareholders’ Equity	$	14,977,812		$	12,093,391		23.9

Summary Financials – First Quarter 2005

AVERAGE BALANCE SHEETS (Unaudited)

(Dollars in thousands)


	Three Months Ended March 31,						Percent Change
	2005			2004			Percent Change
Cash and due from banks	$	238,742		$	217,575		9.7	%
Interest-earning deposits with banks		37,938			33,800		12.2
Federal funds sold		—			5,165		(100.0	)
Loans held for sale		21,935			31,720		(30.8	)
Securities available for sale		3,054,277			2,449,138		24.7
Total loans		10,604,408			8,660,549		22.4
Allowance for loan losses		(149,925	)		(124,751	)	20.2

Net loans		10,454,483			8,535,798		22.5
Premises and equipment		156,942			153,155		2.5
Goodwill and other intangibles		541,086			244,035		121.7
Assets of discontinued operations		—			864,779		(100.0	)
Other assets		421,298			354,550		18.8

Total Assets	$	14,926,701		$	12,889,715		15.8

Total interest-earning assets	$	13,718,558		$	11,180,372		22.7

Non-interest-bearing deposits	$	1,563,661		$	1,228,468		27.3
Interest-bearing deposits		8,858,682			7,448,158		18.9

Total deposits		10,422,343			8,676,626		20.1
Repos and federal funds purchased		915,969			988,628		(7.3	)
Debt and FHLB advances		1,982,049			1,247,874		58.8
Liabilities of discontinued operations		—			811,805		(100.0	)
Other liabilities		142,437			131,183		8.6
Shareholders’ equity		1,463,903			1,033,599		41.6

Total Liabilities and Shareholders’ Equity	$	14,926,701		$	12,889,715		15.8


ASSET QUALITY DATA:
	March 31,
	2005			2004
Non-accrual loans	$	125,464		$	90,132
Restructured loans		526			585

Total non-performing loans		125,990			90,717
Investment securities		11,705
Other real estate owned		11,854			10,775

Total non-performing assets	$	149,549		$	101,492

Loans 90 days or more past due & still accruing	$	26,885		$	26,039
Allowance for loan losses		150,122			125,043

ASSET QUALITY RATIOS:

Non-accrual loans to total loans		1.18	%		1.05	%
Non-performing loans to total loans		1.18			1.06
Non-performing assets to total assets		1.00			0.84
Loans 90 days or more past due and still accruing to total loans		0.25			0.30
Allowance for loan losses to non-performing loans		119.15			137.84
Allowance for loan losses to non-performing assets		100.38			123.20
Allowance for loan losses to total loans		1.41			1.46

NET CHARGE-OFFS
	Three Months Ended March 31,
	2005			2004
Net charge-offs	$	31,748		$	6,565
Net charge-offs to average loans		1.21	%		0.30	%

Summary Financials - First Quarter 2005

SKY FINANCIAL GROUP, INC.

*NON-GAAP DISCLOSURE RECONCILIATIONS

(Dollars in thousands)

Core operating earnings reflect net income adjusted to exclude the after-tax effect of discontinued operations, merger, integration and

restructuring expenses that are not reflective of on-going operations or are not expected to recur.

Cash operating earnings are core operating earnings adjusted to exclude the after-tax effect of amortizing core deposits and other intangibles. Management believes that both core operating earnings and cash operating earnings assist the investor in understanding the impact of merger, integration and restructuring expenses and amortization of intangibles on reported results.

Core operating earnings

The following reconciles GAAP income from continuing operations to core operating earnings for the three months ended March 31, 2005 and 2004:


	Three Months Ended March 31,
	2005		2004
Income from continuing operations	$	31,471	$	39,952

Merger, integration and restructuring expense		—		346
Tax effect		—		(121	)

After-tax non-operating items		—		225

Core operating earnings	$	31,471	$	40,177

Merger, integration and restructuring expense in 2004 reflect charges associated with the sale of Sky Financial Solutions, Inc. in the first quarter of 2004.

Core operating earnings is used as the numerator to calculate core operating return on average assets, core operating return on average equity and core operating earnings per share. Additionally, merger, integration and restructuring expenses are deducted from non-interest expense in the numerator of the core operating efficiency ratio disclosed in the tables.

The comparable information on a GAAP basis is also provided in the tables.

Cash operating earnings

The following table reconciles core operating earnings to cash operating earnings for the three months ended March 31, 2005 and 2004:


	Three Months Ended March 31,
	2005			2004
Core operating earnings	$	31,471		$	40,177

Amortization of core deposits and other intangible assets		3,554			1,907
Tax effect		(1,244	)		(667	)

After-tax non-cash items		2,310			1,240

Cash operating earnings	$	33,781		$	41,417

Cash operating earnings is used as the numerator to calculate the cash operating return on average tangible equity and the cash operating return on average tangible assets. The denominator of each ratio is adjusted to deduct the average balance of intangible assets during the period. Additionally, amortization of core deposits and other intangible assets and merger, integration and restructuring expenses are deducted from non-interest expense in the numerator of the cash operating efficiency ratio disclosed in the tables. The comparable GAAP information is also included in the tables.

Summary Financials - First Quarter 2005

The following table reconciles average GAAP equity to average tangible equity for each of the period ends presented in the tables.


	Three Months Ended March 31,
	2005			2004
Average GAAP equity	$	1,463,903		$	1,033,599

Goodwill		471,141			193,561
Core deposits and other intangibles		69,945			50,474
Deferred taxes		(24,481	)		(17,666	)

		516,605			226,369

Average tangible equity	$	947,298		$	807,230

The following table reconciles average GAAP assets to average tangible assets for the three months ended March 31, 2005 and 2004:
	Three Months Ended March 31,
	2005			2004
Average GAAP assets (excluding
discontinued operations)	$	14,926,701		$	12,024,936

Goodwill		471,141			193,561
Core deposits and other intangibles		69,945			50,474
Deferred taxes		(24,481	)		(17,666	)

		516,605			226,369

Average tangible assets	$	14,410,096		$	11,798,567

The following table reconciles GAAP earnings per share to core operating earnings per share and cash operating earnings per share:

Basic EPS


	Three Months Ended March 31,
	2005		2004
Net income	$	0.30	$	0.63
After-tax earnings from discontinued operations		—		(0.20	)
After-tax merger, integration and restructuring		—		—

Core operating earnings		0.30		0.43
After-tax amortization of core deposits and other intangible assets		0.02		0.01

Cash operating earnings	$	0.32	$	0.44

Diluted EPS


	Three Months Ended March 31,
	2005		2004
Net income	$	0.29	$	0.62
After-tax earnings from discontinued operations		—		(0.20	)
After-tax merger, integration and restructuring		—		0.01

Core operating earnings		0.29		0.43
After-tax amortization of core deposits and other intangible assets		0.02		0.01

Cash operating earnings	$	0.31	$	0.44

- end -

LOGO

First Quarter 2005

Supplemental Financial Information

April 20, 2005

Supplemental Financial Information - First Quarter 2005

SKY FINANCIAL GROUP, INC.

FIVE QUARTERS STATEMENTS OF INCOME (unaudited)

(Dollars in thousands)


	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Fully taxable equivalent interest income	$	192,410	$	186,929	$	179,675	$	148,839	$	149,872

Interest income	$	191,594	$	186,124	$	178,772	$	148,027	$	149,021
Interest expense		67,587		61,819		56,256		45,339		47,218

Net interest income		124,007		124,305		122,516		102,688		101,803
Provision for credit losses		30,823		11,615		8,360		11,020		6,665

Net interest income after provision for credit losses		93,184		112,690		114,156		91,668		95,138

Non-interest income
Trust services income		5,414		4,996		5,079		4,101		4,105
Service charges and fees on deposit accounts		12,173		13,395		13,820		11,107		9,642
Mortgage banking income		5,755		5,675		6,845		6,879		5,445
Brokerage and insurance commissions		16,630		13,358		14,703		13,451		14,308
Net securities gains (losses)		878		8,310		1,854		2,877		1,528
Other income		10,621		11,918		10,446		11,192		8,381

Total non-interest income		51,471		57,652		52,747		49,607		43,409

Non-interest expenses Salaries and employee benefits		52,348		53,190		51,583		44,190		44,648
Occupancy and equipment expense		17,604		16,824		15,962		13,436		12,874
Merger, integration and restructuring expense		—		365		3,831		—		346
Other operating expenses		28,330		27,452		26,516		24,672		20,635

Total non-interest expense		98,282		97,831		97,892		82,298		78,503

Income from continuing operations before income taxes		46,373		72,511		69,011		58,977		60,044
Income taxes from continuing operations		14,902		23,612		22,863		18,776		20,092

Income from continuing operations		31,471		48,899		46,148		40,201		39,952

Income from discontinued operations, net of tax		—		430		—		—		18,725

Net income	$	31,471	$	49,329	$	46,148	$	40,201	$	58,677

Core operating earnings	$	31,471	$	49,136	$	48,638	$	40,201	$	40,177

Supplemental Financial Information - First Quarter 2005

SKY FINANCIAL GROUP, INC.

FIVE QUARTER PERFORMANCE RATIOS AND SHARE DATA

(Unaudited)

PERFORMANCE RATIOS


ACTUAL	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Return on average equity	8.72	%	13.55	%	13.21	%	15.25	%	22.83	%
Return on average assets	0.86		1.33		1.26		1.33		1.83

CONTINUING OPERATIONS	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Return on average equity	8.72	%	13.43	%	13.21	%	15.25	%	15.55	%
Return on average assets	0.86		1.32		1.26		1.33		1.34
Net interest rate spread (FTE)	3.36		3.37		3.43		3.41		3.43
Net interest rate margin (FTE)	3.69		3.68		3.69		3.69		3.69
Efficiency ratio	55.75		53.53		55.57		53.75		53.75

CORE OPERATING *	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Return on average equity	8.72	%	13.50	%	13.92	%	15.25	%	15.63	%
Return on average assets	0.86		1.33		1.33		1.33		1.34
Efficiency ratio	55.75		53.33		53.39		53.75		53.51

CASH OPERATING*	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Return on average tangible equity	14.46	%	21.64	%	22.52	%	20.09	%	20.64	%
Return on average assets	0.95		1.44		1.44		1.40		1.41
Efficiency ratio	53.73		51.37		51.38		52.48		52.20

Supplemental Financial Information - First Quarter 2005

SKY FINANCIAL GROUP, INC.

FIVE QUARTER SHARE DATA

(Unaudited)


	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Earnings per share from continuing operations
Basic	$	0.30	$	0.46	$	0.44	$	0.43	$	0.43
Diluted		0.29		0.46		0.43		0.43		0.42

Earnings per share from discontinued operations
Basic		—		0.00		—		—		0.20
Diluted		—		0.00		—		—		0.20

Earnings per share
Basic		0.30		0.47		0.44		0.43		0.63
Diluted		0.29		0.46		0.43		0.43		0.62

Core operating earnings per share*
Basic		0.30		0.46		0.46		0.43		0.43
Diluted		0.29		0.46		0.46		0.43		0.43

Cash operating earnings per share*
Basic		0.32		0.49		0.48		0.44		0.44
Diluted		0.31		0.48		0.48		0.44		0.44

Cash dividend declared per common share		0.22		0.22		0.21		0.21		0.21

Book value per share		13.30		13.77		13.44		11.13		11.46

Average shares outstanding
Basic		106,330,000		105,922,000		105,479,000		93,322,000		92,957,000
Diluted		107,591,000		107,163,000		106,408,000		94,314,000		94,226,000

Book value calculation shares outstanding		105,752,028		106,838,511		105,372,832		93,420,000		93,063,000

Supplemental Financial Information - First Quarter 2005

SKY FINANCIAL GROUP, INC.

FIVE QUARTER AVERAGE BALANCE SHEETS (Unaudited)

(Dollars in thousands)


	2005			2004
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Cash and due from banks	$	238,742		$	244,726		$	252,731		$	198,246		$	217,575
Interest-earning deposits with banks		37,938			36,498			42,017			36,385			33,800
Federal funds sold		—			2,186			2,065			885			5,165
Loans held for sale		21,935			27,601			30,139			31,866			31,720
Securities available for sale		3,054,277			3,075,580			3,078,861			2,570,976			2,449,138
Total loans		10,604,408			10,400,806			10,139,711			8,631,914			8,660,549
Allowance for loan losses		(149,925	)		(149,288	)		(147,056	)		(124,752	)		(124,751	)

Net loans		10,454,483			10,251,518			9,992,655			8,507,162			8,535,798
Premises and equipment		156,942			154,329			159,328			147,058			153,155
Goodwill and other intangibles		541,086			527,525			516,673			247,469			244,035
Assets of discontinued operations		—			—			—			—			864,779
Other assets		421,298			431,688			448,680			374,374			354,550

Total Assets	$	14,926,701		$	14,751,651		$	14,523,149		$	12,114,421		$	12,889,715

Total interest-earning assets	$	13,718,558		$	13,542,671		$	13,292,793		$	11,272,026		$	11,180,372

Non-interest-bearing deposits	$	1,563,661		$	1,573,004		$	1,508,074		$	1,297,932		$	1,228,468
Interest-bearing deposits		8,858,682			8,724,960			8,704,452			7,517,853			7,448,158

Total deposits		10,422,343			10,297,964			10,212,526			8,815,785			8,676,626
Repos and federal funds purchased		915,969			944,788			867,547			788,596			988,628
Debt and FHLB advances		1,982,049			1,927,205			1,916,452			1,309,167			1,247,874
Liabilities of discontinued operations		—			—			—			—			811,805
Other liabilities		142,437			133,619			136,611			140,355			131,183
Shareholders’ equity		1,463,903			1,448,075			1,390,013			1,060,518			1,033,599

Total Liabilities and Shareholders’ Equity	$	14,926,701		$	14,751,651		$	14,523,149		$	12,114,421		$	12,889,715

Supplemental Financial Information – First Quarter 2005

SKY FINANCIAL GROUP, INC.

FIVE QUARTER ACTUAL BALANCE SHEETS (Unaudited)

(Dollars in thousands)


	2005			2004
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Cash and due from banks	$	217,333		$	232,407		$	238,820		$	223,255		$	200,783
Interest-earning deposits with banks		27,696			32,919			30,118			27,100			29,051
Loans held for sale		27,946			9,433			31,107			15,834			57,650
Securities available for sale		3,063,145			3,091,813			3,118,884			2,541,687			2,613,816
Total loans		10,662,957			10,616,118			10,262,393			8,794,596			8,555,651
Allowance for loan losses		(150,122	)		(151,389	)		(147,479	)		(125,661	)		(125,043	)

Net loans		10,512,835			10,464,729			10,114,914			8,668,935			8,430,608
Premises and equipment		156,829			155,466			154,252			145,315			152,621
Goodwill and other intangibles		539,678			546,932			520,221			246,586			243,356
Assets of discontinued operations		—			—			—			—			—
Other assets		432,350			410,724			434,816			373,171			365,506

Total Assets	$	14,977,812		$	14,944,423		$	14,643,132		$	12,241,883		$	12,093,391

Total interest-earning assets	$	13,781,744		$	13,750,283		$	13,442,502		$	11,379,217		$	11,256,168

Non-interest-bearing deposits	$	1,557,454		$	1,592,510		$	1,477,061		$	1,297,942		$	1,229,981
Interest-bearing deposits		8,883,838			8,759,081			8,677,287			7,484,259			7,541,365

Total deposits		10,441,292			10,351,591			10,154,348			8,782,201			8,771,346
Repos and federal funds purchased		942,150			1,041,361			921,175			844,738			931,792
Debt and FHLB advances		2,043,946			1,924,840			1,989,806			1,436,707			1,156,419
Liabilities of discontinued operations		—			—			—			—			—
Other liabilities		143,648			155,676			161,388			138,029			167,677
Shareholders’ equity		1,406,776			1,470,955			1,416,415			1,040,208			1,066,157

Total Liabilities and Shareholders’ Equity	$	14,977,812		$	14,944,423		$	14,643,132		$	12,241,883		$	12,093,391

Supplemental Financial Information - First Quarter 2005

SKY FINANCIAL GROUP, INC.

FIVE QUARTER LOAN TABLE (Unaudited)

(Dollars in thousands)

ACTUAL


	2005			2004
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Residential Mortgage	$	1,082,756		$	1,110,943		$	1,037,229		$	905,249		$	891,088
Home Equity		1,701,716			1,728,599			1,658,344			1,266,508			1,176,581
Consumer		797,857			807,686			846,412			694,732			717,789
Commercial Real Estate		4,408,069			4,406,151			4,225,070			3,417,236			3,455,525
Commercial & Industrial		2,672,559			2,562,739			2,495,338			2,510,871			2,314,668

Total Loans	$	10,662,957		$	10,616,118		$	10,262,393		$	8,794,596		$	8,555,651

Residential Mortgage		10	%		10	%		10	%		10	%		10	%
Home Equity		16	%		16	%		16	%		14	%		14	%
Consumer		8	%		8	%		8	%		8	%		8	%
Commercial Real Estate		41	%		42	%		42	%		39	%		41	%
Commercial & Industrial		25	%		24	%		24	%		29	%		27	%

Total Loans		100	%		100	%		100	%		100	%		100	%

AVERAGES


	2005			2004
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Residential Mortgage	$	1,103,778		$	1,067,456		$	1,058,878		$	896,779		$	897,703
Home Equity		1,717,047			1,694,828			1,630,492			1,219,822			1,159,333
Consumer		798,477			826,807			865,205			710,848			751,371
Commercial Real Estate		4,405,092			4,281,441			4,071,301			3,523,316			3,483,465
Commercial & Industrial		2,580,014			2,530,274			2,513,835			2,281,149			2,368,677

Total Loans	$	10,604,408		$	10,400,806		$	10,139,711		$	8,631,914		$	8,660,549

Residential Mortgage		10	%		10	%		10	%		10	%		10	%
Home Equity		16	%		16	%		16	%		14	%		13	%
Consumer		8	%		8	%		9	%		8	%		9	%
Commercial Real Estate		42	%		42	%		40	%		42	%		41	%
Commercial & Industrial		24	%		24	%		25	%		26	%		27	%

Total Loans		100	%		100	%		100	%		100	%		100	%

Supplemental Financial Information - First Quarter 2005

SKY FINANCIAL GROUP, INC.

FIVE QUARTER FUNDING TABLE (Unaudited)

(Dollars in thousands)

ACTUAL


	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Non-interest-bearing demand deposits	$	1,557,454	$	1,592,510	$	1,477,061	$	1,297,942	$	1,229,981
Interest-bearing demand deposits		359,620		325,751		389,986		238,646		257,931
Savings deposits		3,825,900		3,874,943		3,979,107		3,493,196		3,610,996
Time deposits		4,698,318		4,558,387		4,308,194		3,752,417		3,672,438

Total deposits		10,441,292		10,351,591		10,154,348		8,782,201		8,771,346

Short-term borrowings		942,150		1,041,361		921,175		844,738		931,792
Trust preferred securities		188,326		189,558		185,067		145,583		169,669
Debt and FHLB advances		1,855,620		1,735,282		1,804,739		1,291,123		986,751

Total funding sources	$	13,427,388	$	13,317,792	$	13,065,329	$	11,063,645	$	10,859,558

AVERAGE


	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Non-interest-bearing demand deposits	$	1,563,661	$	1,573,004	$	1,508,074	$	1,297,932	$	1,228,468
Interest-bearing demand deposits		347,180		362,352		353,368		239,174		238,777
Savings deposits		3,879,783		3,939,766		4,014,051		3,554,212		3,558,869
Time deposits		4,631,719		4,422,842		4,337,033		3,724,467		3,650,512

Total deposits		10,422,343		10,297,964		10,212,526		8,815,785		8,676,626

Short-term borrowings		915,969		944,788		867,547		788,596		988,628
Trust preferred securities		189,726		186,668		182,288		163,503		164,859
Debt and FHLB advances		1,792,323		1,740,535		1,734,164		1,145,664		1,083,015

Total funding sources	$	13,320,361	$	13,169,955	$	12,996,525	$	10,913,548	$	10,913,128

Supplemental Financial Information - First Quarter 2005

The following asset quality information does not include Sky Financial Solutions.

ASSET QUALITY DATA:


	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Non-accrual loans	$	125,464	$	143,207	$	122,050	$	95,674	$	90,132
Restructured loans		526		541		556		575		585

Total non-performing loans		125,990		143,748		122,606		96,249		90,717
Investment securities		11,705		11,705		11,705		—		—
Other real estate owned		11,854		10,055		11,924		10,766		10,775

Total non-performing assets	$	149,549	$	165,508	$	146,235	$	107,015	$	101,492

Loans 90 days or more past due & still accruing	$	26,885	$	16,243	$	17,183	$	12,841	$	26,039
Net charge-offs		31,748		9,864		8,106		10,402		6,565
Allowance for loan losses		150,122		151,389		147,479		125,661		125,043

ASSET QUALITY RATIOS:


	2005		2004
	1st qtr		4th qtr		3rd qtr		2nd qtr		1st qtr
Non-accrual loans to total loans	1.18	%	1.35	%	1.19	%	1.09	%	1.05	%
Non-performing loans to total loans	1.18		1.35		1.19		1.09		1.06
Non-performing assets to total assets	1.00		1.11		1.00		0.87		0.84
Loans 90 days or more past due and still accruing to total loans	0.25		0.15		0.17		0.15		0.30
Net charge-offs to average loans	1.21		0.38		0.32		0.48		0.30
Allowance for loan losses to non-performing loans	119.15		105.32		120.29		130.56		137.84
Allowance for loan losses to non-performing assets	100.38		91.47		100.85		117.42		123.20
Allowance for loan losses to total loans	1.41		1.43		1.44		1.43		1.46

Supplemental Financial Information - First Quarter 2005

SKY FINANCIAL GROUP, INC.

*NON-GAAP DISCLOSURE RECONCILIATIONS

(Dollars in thousands)

Core operating earnings reflect net income adjusted to exclude the after-tax effect of discontinued operations, merger, integration and restructuring expenses that are not reflective of on-going operations or are not expected to recur.

Core operating earnings

The following reconciles GAAP income from continuing operations to core operating earnings for each of the five quarters presented in the tables:


	2005		2004
	1st qtr		4th qtr			3rd qtr			2nd qtr		1st qtr
Income from continuing operations	$	31,471	$	48,899		$	46,148		$	40,201	$	39,952

Merger, integration and restructuring expense		—		365			3,831			—		346
Tax effect		—		(128	)		(1,341	)		—		(121	)

After-tax non-operating items		—		237			2,490			—		225

Core operating earnings	$	31,471	$	49,136		$	48,638		$	40,201	$	40,177

Merger, integration and restructuring expense in 2004 reflect charges associated with the acquisition of Prospect Bancshares Inc. and Second Bancorp Inc. and the sale of Sky Financial Solutions, Inc. in the fourth, third and first quarters, respectively.

The comparable information on a GAAP basis is also provided in the tables.

Supplemental Financial Information - First Quarter 2005

Cash operating earnings

The following reconciles core operating earnings to cash operating earnings for each of the five quarters presented in these tables:


	2005			2004
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Core operating earnings	$	31,471		$	49,136		$	48,638		$	40,201		$	40,177

Amortization of core deposits and other intangible assets		3,554			3,577			3,553			1,943			1,907
Tax effect		(1,244	)		(1,252	)		(1,244	)		(680	)		(667	)

After-tax non-operating items		2,310			2,325			2,309			1,263			1,240

Cash operating earnings	$	33,781		$	51,461		$	50,947		$	41,464		$	41,417

Supplemental Financial Information - First Quarter 2005

The following table reconciles average GAAP equity to average tangible equity for each of the period ends presented in the tables.


	2005			2004
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Average GAAP equity	$	1,463,903		$	1,448,075		$	1,390,013		$	1,060,518		$	1,033,599

Goodwill		471,141			454,488			440,734			198,414			193,561
Core deposits and other intangibles		69,945			73,037			75,939			49,056			50,474
Deferred taxes		(24,481	)		(25,563	)		(26,579	)		(17,170	)		(17,666	)

		516,605			501,962			490,094			230,300			226,369

Average tangible equity	$	947,298		$	946,113		$	899,919		$	830,218		$	807,230

The following table reconciles average GAAP assets to average tangible assets for each of the period ends presented in the tables.


	2005			2004
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Average GAAP assets (excluding discontinued operations)	$	14,926,701		$	14,751,651		$	14,523,149		$	12,114,421		$	12,024,936

Goodwill		471,141			454,488			440,734			198,414			193,561
Core deposits and other intangibles		69,945			73,037			75,939			49,056			50,474
Deferred taxes		(24,481	)		(25,563	)		(26,579	)		(17,170	)		(17,666	)

		516,605			501,962			490,094			230,300			226,369

Average tangible assets	$	14,410,096		$	14,249,689		$	14,033,055		$	11,884,121		$	11,798,567

Supplemental Financial Information - First Quarter 2005

The following table reconciles GAAP earnings per share to core operating earnings per share and cash operating earnings per share:

Basic EPS


	2005		2004
	1st qtr		4th qtr			3rd qtr		2nd qtr		1st qtr
Net income	$	0.30	$	0.47		$	0.44	$	0.43	$	0.63
After-tax earnings from discontinued operations		0.00		(0.00	)		0.00		0.00		(0.20	)
After-tax merger, integration and restructuring		0.00		0.00			0.02		0.00		0.00

Core operating earnings		0.30		0.46			0.46		0.43		0.43
After-tax amortization of core deposits and other intangible assets		0.02		0.02			0.02		0.01		0.01

Cash operating earnings	$	0.32	$	0.49		$	0.48	$	0.44	$	0.44

Diluted EPS


	2005		2004
	1st qtr		4th qtr			3rd qtr		2nd qtr		1st qtr
Net income	$	0.29	$	0.46		$	0.43	$	0.43	$	0.62
After-tax earnings from discontinued operations		0.00		(0.00	)		0.00		0.00		(0.20	)
After-tax merger, integration and restructuring		0.00		0.00			0.02		0.00		0.01

Core operating earnings		0.29		0.46			0.45		0.43		0.43
After-tax amortization of core deposits and other intangible assets		0.02		0.02			0.02		0.01		0.01

Cash operating earnings	$	0.31	$	0.48		$	0.47	$	0.44	$	0.44

-end-

SKY Financial Inactive 8-KSky Financial Group Reports First Quarter Results