UPDATE 1-Huntington Bank to cut 500 jobs, $100 mln in costs

* Maintaining salaries at 2008 levels

* Suspending company 401(k) match

* CEO calls bank 'well positioned'

NEW YORK, Feb 3 (Reuters) - Huntington Bancshares Inc (HBAN.O) said on Tuesday that it was cutting 500 jobs, or about 4 percent of its workforce, as part of moves to slash $100 million in costs in 2009.

The Ohio-based lender, whose shares plunged on Monday on concern the bank might have to raise capital to absorb soaring credit losses, said the cost-cuts would be the equivalent of 18 cents per share, net of one-time expenses.

Other expense reductions will come from freezing salaries at 2008 levels, eliminating executive and incentive awards for 2008 and suspending the company's match for 401(k) retirement plan contributions.

Huntington Chief Executive Stephen Steinmour said in a statement that the bank was "well positioned," adding that it had a "strong" liquidity position and that its regulatory capital ratios were at least $1.9 billion above the minimum for well capitalized banks.

The bank said the job cuts, across the six states in which it operates, would be completed by March 1. (Reporting by Christian Plumb; Editing by Steve Orlofsky)