UPDATE 1-Huntington sees 2008 charge-offs near high end

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NEW YORK, June 19 (Reuters) - U.S. Midwest regional bank Huntington Bancshares Inc (HBAN.O) said on Thursday it expected full-year net charge-offs to be near the high end of a previously targeted range amid a weak economy in many of its markets.

Shares of the Columbus, Ohio-based bank fell more than 11 percent to $4.60 after the bell.

The bank said it expects its full-year outlook for net charge-offs to be near the high end of the previously targeted range of 0.60 percent to 0.65 percent of average total loans and leases.

It expects to report second quarter net charge-offs of an annualized 0.60 percent to 0.65 percent.

Second-quarter provision for credit losses is expected to exceed net charge-offs by about $55 million to $65 million, compared with $40.2 million in the first quarter, reflecting continued economic weakness in many of its markets.

In the second half of 2008, the company expects the allowance for loan and lease losses to increase at a slower pace than it did in the first half.

Huntington said its June 30 Tier-1 capital ratio, a measure of its ability to cover losses, is expected to be at least 8.80 percent, up from 7.56 percent at the end of the first quarter. It said it expects the ratio to increase 15-20 basis points each quarter throughout 2008.

"We are fully aware that the economic environment remains difficult and could continue to get even more so," said Chief Executive Thomas Hoaglin. "We firmly believe the actions we have taken over the last several years will result in better relative credit quality performance throughout this cycle." (Reporting by Paritosh Bansal)