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Derivative Financial Instruments | 9 Months Ended
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Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments Our hedging policy allows the use of interest rate derivative instruments to manage our exposure to interest rate risk of specified assets and liabilities. All derivative instruments are carried on the balance sheet at their estimated fair value and are recorded in other assets or other liabilities, as appropriate, and in the net change in each of these financial statement line items in the accompanying consolidated statement of cash flows. Fair Value Hedges Fair value hedges are used to manage interest rate risk related to the underlying hedged items. The Company utilizes fair value hedges and applies the portfolio layer method to hedge stated amounts within a closed portfolio of certain available-for-sale mortgage-backed debt securities. As of September 30, 2025, and December 31, 2024, the amortized cost of closed portfolios of AFS debt securities using the portfolio layer method was $124.1 million and $0 million, respectively. To mitigate the impact of interest rate fluctuations on fair value, the Company previously entered into interest rate swap agreements on individual loans, converting the fixed rate loans to a variable rate. The Company also previously utilized fair value hedges to hedge investment securities, converting the fixed rate security to a variable rate. During the year ended December 31, 2024, the Company terminated the fair value hedges on loans and securities, recording a deferred gain of $2.3 million on the loan termination that will be accreted into interest income over the remaining life of the underlying loans, and a mark-to-market adjustment of $0.3 million that was recorded in non-interest income upon termination of the fair value hedges on investment securities. Changes to fair-value hedges on loans and the related loans are recorded as gains or losses in non–interest income. Changes to fair value hedges on mortgage-backed securities are recorded in interest income. The fair value hedges are considered highly effective. Other Derivative Instruments From time to time, the Company may enter into interest rate swaps that are not designated as hedging instruments. These derivative contracts typically involve transactions in which the Company enters into an interest rate swap with a customer while simultaneously executing an offsetting interest rate swap with a third-party financial institution. Under these arrangements, the Company agrees to pay interest to the customer on a notional amount at a variable rate and receives interest from the customer at a fixed rate. Concurrently, the Company pays the same fixed rate to the third-party financial institution and receives the same variable rate on the same notional amount. These interest rate derivative contracts allow our customers to effectively convert variable rate loans to fixed rate loans. The Company also enters into non–hedging derivatives in the form of mortgage loan forward sale commitments with investors and commitments to originate mortgage loans as part of its mortgage banking operations. As of September 30, 2025, these derivatives are recorded at fair value and are not expected to have a significant impact on the Company's net income over the next 12 months. Changes in fair value of both the forward sale commitments and commitments to originate mortgage loans were recorded and the net gains or losses included in the Company’s gain on sale of loans. The following tables summarize the fair value of our derivative financial instruments utilized by Horizon on a gross basis for the periods indicated.
| Asset Derivatives |  | Liability Derivatives
| September 30, 2025 |  | September 30, 2025
| Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts – fair value hedges | $ | — |  |  | $ | — |  |  | $ | 124,093 |  |  | $ | 530 |
Total derivatives designated as hedging instruments | — |  |  | — |  |  | 124,093 |  |  | 530 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts -customer accommodation | $ | 462,008 |  |  | $ | 13,973 |  |  | $ | 462,008 |  |  | $ | 13,973 |
Mortgage loan contracts | — |  |  | — |  |  | 21,246 |  |  | 18 |
Commitments to originate mortgage loans | 10,992 |  |  | 314 |  |  | — |  |  | — |
Total derivatives not designated as hedging instruments | 473,000 |  |  | 14,287 |  |  | 483,254 |  |  | 13,991 |
Total derivatives subject to enforceable master netting arrangements, gross | $ | 473,000 |  |  | $ | 14,287 |  |  | $ | 483,254 |  |  | $ | 13,991 |
Less: Gross amounts offset | — |  |  | — |  |  | — |  |  | — |
Total derivatives subject to enforceable master netting arrangements, net | $ | 473,000 |  |  | $ | 14,287 |  |  | $ | 483,254 |  |  | $ | 13,991 |
| Asset Derivatives |  | Liability Derivatives
| December 31, 2024 |  | December 31, 2024
| Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts - customer accommodation | $ | 521,520 |  |  | $ | 28,817 |  |  | $ | 521,520 |  |  | $ | 28,817 |
Mortgage loan contracts | 6,155 |  |  | 27 |  |  | — |  |  | — |
Commitments to originate mortgage loans | 6,856 |  |  | 202 |  |  | — |  |  | — |
Total derivatives not designated as hedging instruments | 534,531 |  |  | 29,046 |  |  | 521,520 |  |  | 28,817 |
Total derivatives subject to enforceable master netting arrangements, gross | $ | 534,531 |  |  | $ | 29,046 |  |  | $ | 521,520 |  |  | $ | 28,817 |
Less: Gross amounts offset | — |  |  | — |  |  | — |  |  | — |
Total derivatives subject to enforceable master netting arrangements, net | $ | 534,531 |  |  | $ | 29,046 |  |  | $ | 521,520 |  |  | $ | 28,817 |
While the Company is party to master netting arrangements with most of its swap derivative counterparties, the Company has elected to not offset derivative assets and liabilities under these agreements on its consolidated balance sheets. Collateral exchanged between the Company and dealer bank counterparties is generally subject to thresholds and transfer minimums and usually consists of marketable securities. At September 30, 2025, the Company pledged marketable securities as collateral with a carrying value of $27.7 million. The effect of the derivative and the hedged item in fair value hedging relationships on the condensed consolidated statements of income for three and nine month periods ended September 30, 2025 and September 30, 2024 is as follows:
| Location of gain (loss) recognized on derivative and Hedge item |  | Amount of Gain (Loss) Recognized on Derivative and Hedged Item
|  | Three Months Ended |  | Nine Months Ended |  |
|  | September 30, 2025 |  | September 30, 2024 |  | September 30, 2025 |  | September 30, 2024 |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts - fair value hedge | Interest income - loans receivable |  | $ | — |  |  | $ | 317 |  |  | $ | — |  |  | $ | 982 |  |  |  |  |
Hedged item |  | — |  |  | (317) |  |  | — |  |  | (982) |  |  |  |  |
Interest rate contracts - fair value hedge | Interest income - investment securities |  | 18 |  |  | — |  |  | 18 |  |  | — |  |  |  |  |
Hedged item |  | 72 |  |  | — |  |  | 72 |  |  | — |  |  |  |  |
Total |  |  | $ | 90 |  |  | $ | — |  |  | $ | 90 |  |  | $ | — |  |  |  |  |
The effect of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and nine month periods ended September 30, 2025 and September 30, 2024 is as follows:
| Location of gain (loss) recognized on derivative |  | Amount of Gain (Loss) Recognized on Derivative
|  | Three Months Ended |  | Nine Months Ended |  |
|  | September 30, 2025 |  | September 30, 2024 |  | September 30, 2025 |  | September 30, 2024 |  |  |  |
Derivative not designated as hedging relationship |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loan contracts | Non-interest income-Gain on sale of loans |  | $ | (331) |  |  | $ | (24) |  |  | $ | 112 |  |  | $ | 34 |  |  |  |  |
Commitments to originate mortgage loans | Non-interest income-Gain on sale of loans |  | 101 |  |  | 378 |  |  | (45) |  |  | 181 |  |  |  |  |
Total |  |  | $ | (230) |  |  | $ | 354 |  |  | $ | 67 |  |  | $ | 215 |  |  |  |  |
The following tables summarize the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships.
| Amortized Cost of Hedged Items |  | Cumulative Hedge Accounting Basis Adjustments
| September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024
Available-for-Sale Debt Securities | $ | 125,367 |  |  | $ | — |  |  | $ | 530 |  |  | $ | — |

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