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Regulatory Capital | 9 Months Ended
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Sep. 30, 2020
Banking and Thrift [Abstract] |
Regulatory Capital | Regulatory Capital Horizon and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. These capital requirements implement changes arising from the Dodd–Frank Wall Street Reform and Consumer Protection Act and the U.S. Basel Committee on Banking Supervision’s capital framework (known as “Basel III”). 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. The Company and Bank are subject to minimum regulatory capital requirements as defined and calculated in accordance with the Basel III–based regulations. As allowed under Basel III rules, the Company made the decision to opt–out of including accumulated other comprehensive income in regulatory capital. The minimum regulatory capital requirements are set forth in the table below. In addition, to be categorized as well capitalized, the Company and Bank must maintain 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 September 30, 2020 and December 31, 2019, the Company and Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the end of the third quarter of 2020 that management believes have changed the Bank’s classification as well capitalized. There is no threshold for well capitalized status for bank holding companies. In October 2019, the federal banking agencies finalized a new rule that will simplify capital requirements for qualified community banks that opt into the new community bank leverage ratio framework. The new framework was available to use in March 31, 2020 Call Reports or Forms FRY-9C (as applicable) for depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets, among other qualifying criteria. Horizon did not elect the new community bank leverage ratio framework. As of March 31, 2020, the Company and Bank elected the transition option of the 2019 CECL Rule which allows banking organizations to phase in over a three–year period the day–one adverse effects of CECL on their regulatory capital ratios. Horizon and the Bank’s actual and required capital ratios as of September 30, 2020 and December 31, 2019 were as follows:
| Actual |  | Required for Capital Adequacy Purposes(1) |  | Required For Capital Adequacy Purposes with Capital Buffer(1) |  | Well Capitalized Under Prompt Corrective Action Provisions(1)
| Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital (to risk–weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | $ | 640,728 |  |  | 14.38 | % |  | $ | 356,455 |  |  | 8.00 | % |  | $ | 467,847 |  |  | 10.50 | % |  | N/A |  | N/A
Bank | 514,974 |  |  | 11.56 | % |  | 356,383 |  |  | 8.00 | % |  | 467,753 |  |  | 10.50 | % |  | $ | 445,479 |  |  | 10.00 | %
Tier 1 capital (to risk–weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 601,331 |  |  | 13.49 | % |  | 267,456 |  |  | 6.00 | % |  | 378,896 |  |  | 8.50 | % |  | N/A |  | N/A
Bank | 475,588 |  |  | 10.67 | % |  | 267,435 |  |  | 6.00 | % |  | 378,866 |  |  | 8.50 | % |  | 356,580 |  |  | 8.00 | %
Common equity tier 1 capital (to risk–weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 485,235 |  |  | 10.89 | % |  | 200,510 |  |  | 4.50 | % |  | 311,905 |  |  | 7.00 | % |  | N/A |  | N/A
Bank | 475,588 |  |  | 10.67 | % |  | 200,576 |  |  | 4.50 | % |  | 312,007 |  |  | 7.00 | % |  | 289,721 |  |  | 6.50 | %
Tier 1 capital (to average assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 601,331 |  |  | 10.82 | % |  | 222,304 |  |  | 4.00 | % |  | 222,304 |  |  | 4.00 | % |  | N/A |  | N/A
Bank | 475,588 |  |  | 8.57 | % |  | 221,978 |  |  | 4.00 | % |  | 221,978 |  |  | 4.00 | % |  | 277,473 |  |  | 5.00 | %
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total capital (to risk–weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | $ | 548,364 |  |  | 13.95 | % |  | $ | 314,395 |  |  | 8.00 | % |  | $ | 412,644 |  |  | 10.500 | % |  | N/A |  | N/A
Bank | 497,227 |  |  | 12.65 | % |  | 314,452 |  |  | 8.00 | % |  | 412,718 |  |  | 10.500 | % |  | $ | 393,065 |  |  | 10.00 | %
Tier 1 capital (to risk–weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 530,643 |  |  | 13.50 | % |  | 235,796 |  |  | 6.00 | % |  | 334,044 |  |  | 8.500 | % |  | N/A |  | N/A
Bank | 479,506 |  |  | 12.20 | % |  | 235,823 |  |  | 6.00 | % |  | 334,082 |  |  | 8.500 | % |  | 314,430 |  |  | 8.00 | %
Common equity tier 1 capital (to risk–weighted assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 473,150 |  |  | 12.04 | % |  | 176,846 |  |  | 4.50 | % |  | 275,094 |  |  | 7.000 | % |  | N/A |  | N/A
Bank | 479,506 |  |  | 12.20 | % |  | 176,867 |  |  | 4.50 | % |  | 275,126 |  |  | 7.000 | % |  | 255,475 |  |  | 6.50 | %
Tier 1 capital (to average assets)(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated | 530,643 |  |  | 10.50 | % |  | 202,111 |  |  | 4.00 | % |  | 202,111 |  |  | 4.000 | % |  | N/A |  | N/A
Bank | 479,506 |  |  | 9.49 | % |  | 202,110 |  |  | 4.00 | % |  | 202,110 |  |  | 4.000 | % |  | 252,638 |  |  | 5.00 | %
(1) As defined by regulatory agencies |  |  |  |  |  |  |  |  |  |

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=117337116&loc=d3e65071-112826 + Details
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