XML 67 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Securities
 3 Months Ended
Mar. 31, 2013
Securities [Abstract]  
Securities

Note 3 – Securities

The fair value of securities is as follows:

 

                                 
March 31, 2013   Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair
Value		  

Available for sale

                                

U.S. Treasury and federal agencies

   $ 45,974     $ 281     $ (38 )    $ 46,217  

State and municipal

     160,824       9,864       (199 )      170,489  

Federal agency collateralized mortgage obligations

     109,727       1,591       (83 )      111,235  

Federal agency mortgage-backed pools

     144,300       5,956       (26 )      150,230  

Private labeled mortgage-backed pools

     1,695       61       —         1,756  

Corporate notes

     32       17       —         49  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale investment securities

   $ 462,552     $ 17,770     $ (346 )    $ 479,976  
   

 

 

    

 

 

    

 

 

    

 

 

  

Held to maturity, State and Municipal

   $ 2,110     $ —       $ —       $ 2,110  
   

 

 

    

 

 

    

 

 

    

 

 

  
         
December 31, 2012   Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair
Value		  

Available for sale

                                

U.S. Treasury and federal agencies

   $ 51,458     $ 351     $ (30 )    $ 51,779  

State and municipal

     162,147       10,842       (84 )      172,905  

Federal agency collateralized mortgage obligations

     95,337       1,533       (39 )      96,831  

Federal agency mortgage-backed pools

     152,372       6,847       (15 )      159,204  

Private labeled mortgage-backed pools

     1,960       71       —         2,031  

Corporate notes

     32       19       —         51  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale investment securities

   $ 463,306     $ 19,663     $ (168 )    $ 482,801  
   

 

 

    

 

 

    

 

 

    

 

 

  

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information, and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. While these securities are held in the available for sale portfolio, Horizon intends, and has the ability, to hold them until the earlier of a recovery in fair value or maturity.

Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. At March 31, 2013, no individual investment security had an unrealized loss that was determined to be other-than-temporary.

The unrealized losses on the Company’s investments in securities of state and municipal governmental agencies, and federal agency mortgage-backed pools were caused by interest rate volatility and not a decline in credit quality. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company expects to recover the amortized cost basis over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at March 31, 2013.

The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2013 and December 31, 2012, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

                                 
    March 31, 2013     December 31, 2012  
    Amortized
Cost		     Fair
Value		     Amortized
Cost		     Fair
Value		  

Available for sale

                                

Within one year

   $ 4,102     $ 4,116     $ 4,358     $ 4,368  

One to five years

     53,522       54,656       49,415       50,673  

Five to ten years

     91,240       96,738       98,551       104,258  

After ten years

     57,966       61,245       61,313       65,436  
   

 

 

    

 

 

    

 

 

    

 

 

  
      206,830       216,755       213,637       224,735  

Federal agency collateralized mortgage obligations

     109,727       111,235       95,337       96,831  

Federal agency mortgage-backed pools

     144,300       150,230       152,372       159,204  

Private labeled mortgage-backed pools

     1,695       1,756       1,960       2,031  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale investment securities

   $ 462,552     $ 479,976     $ 463,306     $ 482,801  
   

 

 

    

 

 

    

 

 

    

 

 

  

Held to maturity

                                

Within one year

   $ 2,110     $ 2,110     $ —       $ —    

One to five years

     —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Total held to maturity investment securities

   $ 2,110     $ 2,110     $ —       $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

The following table shows the gross unrealized losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

 

                                                 
    Less than 12 Months     12 Months or More     Total  

March 31, 2013

   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		  

U.S. Treasury and federal agencies

   $ 15,552     $ (38 )    $ —       $ —       $ 15,552     $ (38 ) 

State and municipal

     16,027       (199 )      —         —         16,027       (199 ) 

Federal agency collateralized mortgage obligations

     31,845       (83 )      —         —         31,845       (83 ) 

Federal agency mortgage-backed pools

     15,241       (26 )      —         —         15,241       (26 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total temporarily impaired securities

   $ 78,665     $ (346 )    $ —       $ —       $ 78,665     $ (346 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
       
     Less than 12 Months     12 Months or More     Total  

December 31, 2012

   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		  

U.S. Treasury and federal agencies

   $ 13,064     $ (30 )    $ —       $ —       $ 13,064     $ (30 ) 

State and municipal

     11,928       (84 )      —         —         11,928       (84 ) 

Federal agency collateralized mortgage obligations

     12,719       (39 )      —         —         12,719       (39 ) 

Federal agency mortgage-backed pools

     4,126       (15 )      —         —         4,126       (15 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total temporarily impaired securities

   $ 41,837     $ (168 )    $ —       $ —       $ 41,837     $ (168 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
                 
    Three months ended March 31  
    2013     2012  

Sales of securities available for sale (Unaudited)

                

Proceeds

   $ 23,485     $ —    

Gross gains

     376       —    

Gross losses

     (8 )      —