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Regulatory Capital
 3 Months Ended
Mar. 31, 2019
Banking and Thrift [Abstract]  
Regulatory Capital
Note 14 – 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. 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 and Tier I leverage ratios as set forth in the table below. As of March 31, 2019 and December 31, 2018, the Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the end of the first quarter of 2019 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, 2019 and December 31, 2018 were as follows:
 
 
 
Actual
 
 
Required for Capital
1

Adequacy Purposes
 
 
Required For Capital
1

Adequacy Purposes
with Capital Buffer
 
 
Well Capitalized
Under Prompt
1

Corrective Action
Provisions
 
 
 
Amount
 
 
Ratio
 
 
Amount
 
 
Ratio
 
 
Amount
 
 
Ratio
 
 
Amount
 
 
Ratio
 
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital
1
(to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
509,214
 
 
 
13.25
%
 
$
307,362
 
 
 
8.00
%
 
$
403,412
 
 
 
10.50
%
 
 
N/A
 
 
 
N/A
 
Bank
 
 
472,621
 
 
 
12.30
%
 
 
307,361
 
 
 
8.00
%
 
 
403,411
 
 
 
10.50
%
 
$
384,201
 
 
 
10.00
%
Tier 1 capital
1
(to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
491,302
 
 
 
12.79
%
 
 
230,521
 
 
 
6.00
%
 
 
326,572
 
 
 
8.50
%
 
 
N/A
 
 
 
N/A
 
Bank
 
 
454,709
 
 
 
11.84
%
 
 
230,520
 
 
 
6.00
%
 
 
326,570
 
 
 
8.50
%
 
 
307,360
 
 
 
8.00
%
Common equity tier 1 capital
1
(to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
433,809
 
 
 
11.29
%
 
 
172,890
 
 
 
4.50
%
 
 
268,941
 
 
 
7.00
%
 
 
N/A
 
 
 
N/A
 
Bank
 
 
454,709
 
 
 
11.84
%
 
 
172,890
 
 
 
4.50
%
 
 
268,940
 
 
 
7.00
%
 
 
249,730
 
 
 
6.50
%
Tier 1 capital
1
(to average assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
491,302
 
 
 
11.85
%
 
 
165,789
 
 
 
4.00
%
 
 
165,789
 
 
 
4.00
%
 
 
N/A
 
 
 
N/A
 
Bank
 
 
454,709
 
 
 
10.99
%
 
 
165,523
 
 
 
4.00
%
 
 
165,523
 
 
 
4.000
%
 
 
206,904
 
 
 
5.00
%
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total capital
1
(to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
$
427,616
 
 
 
13.39
%
 
$
255,419
 
 
 
8.00
%
 
$
315,283
 
 
 
9.875
%
 
 
N/A
 
 
 
N/A
 
Bank
 
 
396,755
 
 
 
12.43
%
 
 
255,419
 
 
 
8.00
%
 
 
315,283
 
 
 
9.875
%
 
$
319,274
 
 
 
10.00
%
Tier 1 capital
1
(to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
409,760
 
 
 
12.83
%
 
 
191,565
 
 
 
6.00
%
 
 
251,429
 
 
 
7.875
%
 
 
N/A
 
 
 
N/A
 
Bank
 
 
378,899
 
 
 
11.87
%
 
 
191,565
 
 
 
6.00
%
 
 
251,429
 
 
 
7.875
%
 
 
255,420
 
 
 
8.00
%
Common equity tier 1 capital
1
(to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
371,297
 
 
 
11.63
%
 
 
143,673
 
 
 
4.50
%
 
 
203,537
 
 
 
6.375
%
 
 
N/A
 
 
 
N/A
 
Bank
 
 
378,899
 
 
 
11.87
%
 
 
143,674
 
 
 
4.50
%
 
 
203,537
 
 
 
6.375
%
 
 
207,528
 
 
 
6.50
%
Tier 1 capital
1
(to average assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
 
 
409,760
 
 
 
10.12
%
 
 
162,033
 
 
 
4.00
%
 
 
162,033
 
 
 
4.000
%
 
 
N/A
 
 
 
N/A
 
Bank
 
 
378,899
 
 
 
9.34
%
 
 
162,327
 
 
 
4.00
%
 
 
162,327
 
 
 
4.000
%
 
 
202,908
 
 
 
5.00
%