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Regulatory Capital
 12 Months Ended
Dec. 31, 2016
Banking and Thrift [Abstract]  
Regulatory Capital

Note 21 – 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 Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective actions, the Company and 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 Company and 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 Company and 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 December 31, 2016 and 2015, Basel III rules require the Company and 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 Company and Bank must maintain minimum Total risk-based, Tier I risk-based, common equity Tier I risk-based and Tier I leverage ratios as set forth in the table below. As of December 31, 2016 and December 31, 2015, the Company and Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the year ending December 31, 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 December 31, 2016 and 2015 were as follows:

 

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

As of December 31, 2016

                     

Total capital1 (to risk-weighted assets)

                     

Consolidated

    $ 316,576        13.87 %    $ 182,596        8.00 %    $ 196,976        8.63 %      N/A        N/A  

Bank

      319,013        13.98 %    $ 182,541        8.00 %      196,916        8.63 %    $ 228,176        10.00 % 

Tier 1 capital1 (to risk-weighted assets)

                     

Consolidated

      301,739        13.22 %    $ 136,947        6.00 %      151,326        6.63 %      N/A        N/A  

Bank

      304,176        13.33 %    $ 136,905        6.00 %      151,280        6.63 %      182,540        8.00 % 

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

                     

Consolidated

      263,313        11.50 %    $ 103,036        4.50 %      117,460        5.13 %      N/A        N/A  

Bank

      304,176        13.33 %    $ 102,679        4.50 %      117,054        5.13 %      148,314        6.50 % 

Tier 1 capital1 (to average assets)

                     

Consolidated

      301,739        10.44 %    $ 115,609        4.00 %      115,609        4.00 %      N/A        N/A  

Bank

      304,176        9.93 %    $ 122,521        4.00 %      122,521        4.00 %      153,151        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       N/A        N/A  

Bank

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

Tier 1 capital1 (to risk-weighted assets)

                     

Consolidated

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

Bank

      222,814        11.80 %      113,295        6.00 %      N/A        N/A       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       N/A        N/A  

Bank

      222,814        11.80 %      84,971        4.50 %      N/A        N/A       122,737        6.50 % 

Tier 1 capital1 (to average assets)

                     

Consolidated

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

Bank

      222,814        8.77 %      101,626        4.00 %      N/A        N/A       127,032        5.00 % 

 

1  As defined by regulatory agencies

The above minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer was 0.625% at December 31, 2016. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital.