Horizon Announces Higher 4Q Loss Provision

Horizon Bancorp, Michigan City, Ind., has announced an increase in its provision for losses in the fourth quarter related to its wholesale mortgage and indirect auto loan portfolios.Horizon said it raised the provision for losses by $1.4 million in December to account for credit deterioration in the two business segments. The provision expense is expected to total $1.77 million in the fourth quarter, compared with $550,000 in the third quarter. The company said its wholesale mortgage portfolio, the residual of a line of business that was closed in June, totaled $8.9 million as of Dec. 28. "This portfolio consists primarily of residential, second mortgage, home equity lines of credit and term loans with high loan-to-value ratios," Horizon said.