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Regulatory Capital
 9 Months Ended
Sep. 30, 2021
Banking and Thrift, Interest [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, 2021 and December 31, 2020, 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 2021 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, 2021 and December 31, 2020 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)
AmountRatioAmountRatioAmountRatioAmountRatio
September 30, 2021
Total capital (to risk–weighted assets)(1)
Consolidated$678,665 15.27 %$355,555 8.00 %$466,666 10.50 %N/AN/A
Bank575,693 12.97 %355,092 8.00 %466,058 10.50 %$443,865 10.00 %
Tier 1 capital (to risk–weighted assets)(1)
Consolidated634,105 14.27 %266,617 6.00 %377,708 8.50 %N/AN/A
Bank526,731 11.86 %266,474 6.00 %377,505 8.50 %355,299 8.00 %
Common equity tier 1 capital (to risk–weighted assets)(1)
Consolidated518,670 11.67 %200,001 4.50 %311,113 7.00 %N/AN/A
Bank526,731 11.86 %199,856 4.50 %310,887 7.00 %288,681 6.50 %
Tier 1 capital (to average assets)(1)
Consolidated634,105 10.03 %252,883 4.00 %252,883 4.00 %N/AN/A
Bank526,731 8.38 %251,423 4.00 %251,423 4.00 %314,279 5.00 %
December 31, 2020
Total capital (to risk–weighted assets)(1)
Consolidated$648,804 14.91 %$348,024 8.00 %$456,782 10.50 %N/AN/A
Bank532,315 12.21 %348,810 8.00 %457,813 10.50 %$436,013 10.00 %
Tier 1 capital (to risk–weighted assets)(1)
Consolidated607,340 13.96 %261,018 6.00 %369,775 8.50 %N/AN/A
Bank492,221 11.29 %261,606 6.00 %370,609 8.50 %348,808 8.00 %
Common equity tier 1 capital (to risk–weighted assets)(1)
Consolidated491,281 11.29 %195,764 4.50 %304,522 7.00 %N/AN/A
Bank492,221 11.29 %196,205 4.50 %305,207 7.00 %283,407 6.50 %
Tier 1 capital (to average assets)(1)
Consolidated607,340 10.68 %227,507 4.00 %227,507 4.00 %N/AN/A
Bank492,221 8.71 %226,158 4.00 %226,158 4.00 %282,697 5.00 %
(1) As defined by regulatory agencies