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Regulatory Capital
 3 Months Ended
Mar. 31, 2020
Banking and Thrift [Abstract]  
Regulatory Capital
Note 13 – 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 March 31, 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 first 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 March 31, 2020 and December 31, 2019 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
March 31, 2020
Total capital1 (to risk-weighted assets)
Consolidated
$551,215  13.69 %$322,112  8.00 %$422,773  10.50 %N/AN/A
Bank
513,248  12.73 %322,544  8.00 %423,339  10.50 %$403,180  10.00 %
Tier 1 capital1 (to risk-weighted assets)
Consolidated
514,493  12.78 %241,546  6.00 %342,190  8.50 %N/AN/A
Bank
476,526  11.82 %241,891  6.00 %342,679  8.50 %322,522  8.00 %
Common equity tier 1 capital1 (to risk-weighted assets)
Consolidated
457,000  11.35 %181,189  4.50 %281,850  7.00 %N/AN/A
Bank
476,526  11.82 %181,419  4.50 %282,207  7.00 %262,049  6.50 %
Tier 1 capital1 (to average assets)
Consolidated
514,493  10.14 %202,956  4.00 %202,956  4.00 %N/AN/A
Bank
476,526  9.43 %202,132  4.00 %202,132  4.00 %252,665  5.00 %
December 31, 2019
Total capital1 (to risk-weighted assets)
Consolidated
$548,364  13.95 %$314,395  8.00 %$412,644  10.500 %N/AN/A
Bank
497,227  12.65 %314,452  8.00 %412,718  10.500 %$393,065  10.00 %
Tier 1 capital1 (to risk-weighted assets)
Consolidated
530,643  13.50 %235,796  6.00 %334,044  8.500 %N/AN/A
Bank
479,506  12.20 %235,823  6.00 %334,082  8.500 %314,430  8.00 %
Common equity tier 1 capital1 (to risk-weighted assets)
Consolidated
473,150  12.04 %176,846  4.50 %275,094  7.000 %N/AN/A
Bank
479,506  12.20 %176,867  4.50 %275,126  7.000 %255,475  6.50 %
Tier 1 capital1 (to average assets)
Consolidated
530,643  10.50 %202,111  4.00 %202,111  4.000 %N/AN/A
Bank
479,506  9.49 %202,110  4.00 %202,110  4.000 %252,638  5.00 %
(1) As defined by regulatory agencies