Regulatory Capital

12 Months Ended

Dec. 31, 2011

Deposits and Regulatory Capital [Abstract]

Regulatory Capital

Note 18—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. The assigned capital category is largely determined by three ratios that are calculated according to the regulations: total risk adjusted capital, Tier I capital and Tier I leverage ratios. The ratios are intended to measure capital relative to assets and credit risk associated with those assets and off-balance sheet exposures of the entity. The capital category assigned to an entity can also be affected by qualitative judgments made by regulatory agencies about the risk inherent in the entity’s activities that are not part of the calculated ratios.

There are five capital categories defined in the regulations, ranging from well capitalized to critically undercapitalized. Classification of a bank in any of the undercapitalized categories can result in actions by regulators that could have a material effect on a bank’s operations. At December 31, 2011 and 2010, Horizon and the Bank are categorized as well capitalized and met all subject capital adequacy requirements.

		$000,000		$000,000			$000,000		$000,000			$000,000		$000,000
	Actual					For Capital1 Adequacy Purposes					For Well1 Capitalized Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2011
Total capital 1 (to risk-weighted assets)
Consolidated	$	151,396		14.20	%	$	85,294		8.00	%		N/A		N/A
Bank		139,862		13.12	%		85,282		8.00	%	$	106,602		10.00	%
Tier 1 capital 1 (to risk-weighted assets)
Consolidated		138,001		12.94	%		42,659		4.00	%		N/A		N/A
Bank		126,467		11.86	%		42,653		4.00	%		63,980		6.00	%
Tier 1 capital 1 (to average assets)
Consolidated		138,001		9.27	%		59,547		4.00	%		N/A		N/A
Bank		126,467		8.50	%		59,514		4.00	%		74,392		5.00	%
As of December 31, 2010
Total capital 1 (to risk-weighted assets)
Consolidated	$	144,941		15.07	%	$	76,943		8.00	%		N/A		N/A
Bank		133,893		13.96	%		76,730		8.00	%	$	95,912		10.00	%
Tier 1 capital 1 (to risk-weighted assets)
Consolidated		132,860		13.81	%		38,482		4.00	%		N/A		N/A
Bank		121,812		12.70	%		38,366		4.00	%		57,549		6.00	%
Tier 1 capital 1 (to average assets)
Consolidated		132,860		9.37	%		56,717		4.00	%		N/A		N/A
Bank		121,812		8.60	%		56,657		4.00	%		70,821		5.00	%

¹  As defined by regulatory agencies