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Regulatory Capital
 3 Months Ended
Mar. 31, 2015
Banking and Thrift [Abstract]  
Regulatory Capital

Note 12 – Regulatory Capital

Horizon and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies and are assigned to a capital category. Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators, which if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective actions, the Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined), or leverage ratio. For March 31, 2015, Interim Final Basel III rules require the Bank to maintain minimum amounts and ratios of common equity Tier I capital (as defined in the regulation) to risk-weighted assets (as defined). Additionally under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. For December 31, 2014, regulatory capital ratios were calculated under Basel I rules.

 

To be categorized as well capitalized, the Bank must maintain minimum Total risk-based, Tier I risk-based, common equity Tier I risk-based (March 31, 2015) and Tier I leverage ratios as set forth in the table below. As of March 31, 2015 and December 31, 2014, the Bank met all capital adequacy requirements to be considered well capitalized. There were no conditions or events since the end of the first quarter of 2015 that management believes have changed the Bank’s classification as well capitalized. There is no threshold for well-capitalized status for bank holding companies.

Horizon and the Bank’s actual and required capital ratios as of March 31, 2015 and December 31, 2014 were as follows:

 

                  Required For Capital1     Well Capitalized Under Prompt1  
     Actual     Adequacy Purposes     Corrective Action Provisions  
     Amount      Ratio     Amount      Ratio     Amount      Ratio  

As of March 31, 2015

                

Total capital1 (to risk-weighted assets)

                

Consolidated

    $ 218,613         13.74 %    $ 127,286         8.00 %      N/A         N/A   

Bank

      195,409         12.35 %      126,581         8.00 %    $ 158,226         10.00 % 

Tier 1 capital1 (to risk-weighted assets)

                

Consolidated

      201,979         12.69 %      95,498         6.00 %      N/A         N/A   

Bank

      178,775         11.30 %      94,925         6.00 %      126,566         8.00 % 

Common equity tier 1 capital1 (to risk-weighted assets)

                

Consolidated

      156,411         9.83 %      71,602         4.50 %      N/A         N/A   

Bank

      178,775         11.30 %      71,194         4.50 %      102,835         6.50 % 

Tier 1 capital1 (to average assets)

                

Consolidated

      201,979         9.97 %      81,035         4.00 %      N/A         N/A   

Bank

      178,775         8.77 %      81,539         4.00 %      101,924         5.00 % 

As of December 31, 2014

                

Total capital1 (to risk-weighted assets)

                

Consolidated

    $ 212,276         14.48 %    $ 117,280         8.00 %      N/A         N/A   

Bank

      192,604         13.08 %      117,801         8.00 %    $ 147,251         10.00 % 

Tier 1 capital1 (to risk-weighted assets)

                

Consolidated

      195,775         13.35 %      58,659         4.00 %      N/A         N/A   

Bank

      176,103         11.96 %      58,897         4.00 %      88,346         6.00 % 

Tier 1 capital1 (to average assets)

                

Consolidated

      195,775         9.76 %      80,236         4.00 %      N/A         N/A   

Bank

      176,103         8.80 %      80,047         4.00 %      100,059         5.00 % 

 

1  As defined by regulatory agencies