Horizon increases loan-loss hedge. (Horizon Financial Services Inc.) (Brief Article)

Crain's Cleveland Business, February, 1992 by Shingler, Dan

In what looks like a no-confidence vote on the economy, Horizon Financial Services Inc. of Beachwood made a big increase in its loan-loss provision at the end of last year. Horizon, parent of Horizon Savings Bank, added a $500,000 provision to its loan-loss reserves, on top of what the company termed the "routine" $75,000 provision it normally would have taken.

Horizon president Lynn Fritzsche said last week the provision wasn't related to any particular loan, but was a precautionary measure against a weak economy hurting Horizon's loan portfolio in the future. Horizon has not had a problem with bad loans to date; its non-performing assets represent only 0.6% of Horizon's total assets.