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Regulatory Capital
 6 Months Ended
Jun. 30, 2016
Banking and Thrift [Abstract]  
Regulatory Capital

Note 13 – 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 June 30, 2016, 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.

To be categorized as well capitalized, the Bank must maintain minimum Total risk-based, Tier I risk-based, common equity Tier I risk-based (June 30, 2016) and Tier I leverage ratios as set forth in the table below. As of June 30, 2016 and December 31, 2015, the Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the end of the second quarter of 2016 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 June 30, 2016 and December 31, 2015 were as follows:

 

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

As of June 30, 2016

                

Total capital1 (to risk-weighted assets)

                

Consolidated

    $ 267,414         12.56 %    $ 183,703         8.63 %      N/A         N/A   

Bank

      257,203         12.45 %      178,286         8.63 %    $ 206,589         10.00 % 

Tier 1 capital1 (to risk-weighted assets)

                

Consolidated

      253,188         11.89 %      141,130         6.63 %      N/A         N/A   

Bank

      242,977         11.77 %      136,868         6.63 %      165,150         8.00 % 

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

      220,120         10.34 %      109,200         5.13 %      N/A         N/A   

Bank

      242,977         11.77 %      105,902         5.13 %      134,184         6.50 % 

Tier 1 capital1 (to average assets)

                

Consolidated

      253,188         9.55 %      106,069         4.00 %      N/A         N/A   

Bank

      242,977         9.18 %      105,872         4.00 %      132,340         5.00 % 

As of December 31, 2015

                

Total capital1 (to risk-weighted assets)

                

Consolidated

    $ 264,452         13.99 %    $ 151,223         8.00 %      N/A         N/A   

Bank

      237,348         12.57 %      151,057         8.00 %    $ 188,821         10.00 % 

Tier 1 capital1 (to risk-weighted assets)

                

Consolidated

      249,918         13.22 %      113,427         6.00 %      N/A         N/A   

Bank

      222,814         11.80 %      113,295         6.00 %      151,060         8.00 % 

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

      204,350         10.81 %      85,067         4.50 %      N/A         N/A   

Bank

      222,814         11.80 %      84,971         4.50 %      122,737         6.50 % 

Tier 1 capital1 (to average assets)

                

Consolidated

      249,918         9.82 %      101,800         4.00 %      N/A         N/A   

Bank

      222,814         8.77 %      101,626         4.00 %      127,032         5.00 % 

 

1  As defined by regulatory agencies