Securities

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

Securities

Note 3 – Securities

The fair value of securities is as follows:

September 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale
U.S. Treasury and federal agencies	$	46,982	$	394	$	—		$	47,376
State and municipal		163,407		11,476		(62	)		174,821
Federal agency collateralized mortgage obligations		97,534		1,621		(114	)		99,041
Federal agency mortgage-backed pools		166,029		8,114		(6	)		174,137
Private labeled mortgage-backed pools		2,207		81		—			2,288
Corporate notes		32		9		—			41
Total available for sale investment securities	$	476,191	$	21,695	$	(182	)	$	497,704
Held to maturity, State and Municipal	$	6,100	$	—	$	—		$	6,100

December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale
U.S. Treasury and federal agencies	$	12,693	$	329	$	—		$	13,022
State and municipal		135,011		8,950		(71	)		143,890
Federal agency collateralized mortgage obligations		89,016		2,106		—			91,122
Federal agency mortgage-backed pools		173,797		5,669		(115	)		179,351
Private labeled mortgage-backed pools		3,518		118		—			3,636
Corporate notes		32		—		(8	)		24
Total available for sale investment securities	$	414,067	$	17,172	$	(194	)	$	431,045
Held to maturity, State and Municipal	$	7,100	$	34	$	—		$	7,134

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information, and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. While these securities are held in the available for sale portfolio, Horizon intends, and has the ability, to hold them until the earlier of a recovery in fair value or maturity.

Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. At September 30, 2012, no individual investment security had an unrealized loss that was determined to be other-than-temporary.

The unrealized losses on the Company’s investments in securities of state and municipal governmental agencies, and federal agency mortgage-backed pools were caused by interest rate volatility and not a decline in credit quality. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company expects to recover the amortized cost basis over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2012.

The amortized cost and fair value of securities available for sale and held to maturity at September 30, 2012 and December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2012				December 31, 2011
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
Within one year	$	4,232	$	4,245	$	931	$	940
One to five years		45,096		46,420		30,796		31,910
Five to ten years		97,217		102,990		51,476		55,053
After ten years		63,876		68,583		64,533		69,033
		210,421		222,238		147,736		156,936
Federal agency collateralized mortgage obligations		97,534		99,041		89,016		91,122
Federal agency mortgage-backed pools		166,029		174,137		173,797		179,351
Private labeled mortgage-backed pools		2,207		2,288		3,518		3,636
Total available for sale investment securities	$	476,191	$	497,704	$	414,067	$	431,045
Held to maturity
Within one year	$	6,100	$	6,100	$	7,100	$	7,134
One to five years		—		—		—		—
Total held to maturity investment securities	$	6,100	$	6,100	$	7,100	$	7,134

The following table shows the gross unrealized losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 Months					12 Months or More					Total
September 30, 2012	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal	$	9,535	$	(62	)	$	—	$	—		$	9,535	$	(62	)
Federal agency collateralized mortgage obligations		19,284		(114	)		—		—			19,284		(114	)
Federal agency mortgage-backed pools		4,479		(6	)		—		—			4,479		(6	)
Total temporarily impaired securities	$	33,298	$	(182	)	$	—	$	—		$	33,298	$	(182	)
	Less than 12 Months					12 Months or More					Total
December 31, 2011	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and municipal	$	1,550	$	(44	)	$	1,948	$	(27	)	$	3,498	$	(71	)
Federal agency mortgage-backed pools		23,442		(115	)		23		—			23,465		(115	)
Corporate notes		24		(8	)		—		—			24		(8	)
Total temporarily impaired securities	$	25,016	$	(167	)	$	1,971	$	(27	)	$	26,987	$	(194	)

	Three months ended September 30					Nine months ended September 30
	2012			2011		2012			2011
Sales of securities available for sale (Unaudited)
Proceeds	$	14,991		$	153,299	$	14,991		$	170,689
Gross gains		3			1,115		3			1,754
Gross losses		(1	)		—		(1	)		—