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Regulatory Capital
 12 Months Ended
Dec. 31, 2019
Banking and Thrift [Abstract]  
Regulatory Capital
Note 22 – 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’s 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 to risk-weighted assets, and of Tier I capital to average assets, or leverage ratio. For December 31, 2019 and 2018, Basel III rules require the Company and Bank to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. 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, 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 year ending December 31, 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 December 31, 2019 and 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
 
December 31, 2019
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
Total capital
1
(to risk-weighted assets)
   
     
     
     
     
     
     
     
 
Consolidated
  $
548,364
      
13.95
 %   $
314,395
      
8.00
 %   $
412,644
      
10.50
 %    
N/A
     
N/A
 
Bank
   
497,227
     
12.65
 %    
314,452
     
8.00
 %    
412,718
     
10.50
 %   $
393,065
     
10.00
 %
Tier 1 capital
1
(to risk-weighted assets)
   
     
     
     
     
     
     
     
 
Consolidated
   
530,643
      
13.50
 %    
235,796
      
6.00
 %    
334,044
      
8.50
 %    
N/A
     
N/A
 
Bank
   
479,506
     
12.20
 %    
235,823
     
6.00
 %    
334,082
     
8.50
 %    
314,430
     
8.00
 %
Common equity tier 1 capital
1
(to risk-weighted assets)
   
     
     
     
     
     
     
     
 
Consolidated
   
473,150
      
12.04
 %    
176,846
      
4.50
 %    
275,094
      
7.00
 %    
N/A
     
N/A
 
Bank
   
479,506
     
12.20
 %    
176,867
     
4.50
 %    
275,126
     
7.00
 %    
255,475
     
6.50
 %
Tier 1 capital
1
(to average assets)
   
     
     
     
     
     
     
     
 
Consolidated
   
530,643
      
10.50
 %    
202,111
      
4.00
 %    
202,111
      
4.00
 %    
N/A
     
N/A
 
Bank
   
479,506
     
9.49
 %    
202,110
     
4.00
 %    
202,110
     
4.00
 %    
252,638
     
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
 %
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 
was
phased
in
b
y
 
increments starting with the 2016 calculations and was fully implemented
 by
 
2019. The capital conservation buffer was 2.50% at December 31, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital.