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Securities
 12 Months Ended
Dec. 31, 2012
Securities [Abstract]  
Securities

Note 4 — Securities

The fair value of securities is as follows:

 

                                 
December 31, 2012   Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair
Value		  

Available for sale

                                

U.S. Treasury and federal agencies

   $ 51,458     $ 351     $ (30 )    $ 51,779  

State and municipal

     162,147       10,842       (84 )      172,905  

Federal agency collateralized mortgage obligations

     95,337       1,533       (39 )      96,831  

Federal agency mortgage-backed pools

     152,372       6,847       (15 )      159,204  

Private labeled mortgage-backed pools

     1,960       71       —         2,031  

Corporate notes

     32       19       —         51  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale investment securities

   $ 463,306     $ 19,663     $ (168 )    $ 482,801  
   

 

 

    

 

 

    

 

 

    

 

 

  
         
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 December 31, 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 United States Department of the Treasury (“U.S. Treasury”) and federal agencies, 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 December 31, 2012.

The amortized cost and fair value of securities available for sale and held to maturity at December 31, 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.

 

 

                                 
    December 31, 2012     December 31, 2011  
    Amortized
Cost		     Fair
Value		     Amortized
Cost		     Fair
Value		  

Available for sale

                                

Within one year

   $ 4,358     $ 4,368     $ 931     $ 940  

One to five years

     49,415       50,673       30,796       31,910  

Five to ten years

     98,551       104,258       51,476       55,053  

After ten years

     61,313       65,436       64,533       69,033  
   

 

 

    

 

 

    

 

 

    

 

 

  
      213,637       224,735       147,736       156,936  

Federal agency collateralized mortgage obligations

     95,337       96,831       89,016       91,122  

Federal agency mortgage-backed pools

     152,372       159,203       173,797       179,351  

Private labeled mortgage-backed pools

     1,960       2,032       3,518       3,636  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale investment securities

   $ 463,306     $ 482,801     $ 414,067     $ 431,045  

Held to maturity

                                

Within one year

   $ —       $ —       $ 7,100     $ 7,134  

One to five years

     —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Total held to maturity investment securities

   $ —       $ —       $ 7,100     $ 7,134  
   

 

 

    

 

 

    

 

 

    

 

 

  

The following table shows investments’ gross unrealized losses and fair value, 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  

December 31, 2012

   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		  

U.S. Treasury and federal agencies

   $ 13,064     $ (30 )    $ —       $ —       $ 13,064     $ (30 ) 

State and municipal

     11,928       (84 )      —         —         11,928       (84 ) 

Federal agency collateralized mortgage obligations

     12,719       (39 )      —         —         12,719       (39 ) 

Federal agency mortgage-backed pools

     4,126       (15 )      —         —         4,126       (15 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total temporarily impaired securities

   $ 41,837     $ (168 )    $ —       $ —       $ 41,837     $ (168 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
       
    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 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Information regarding security proceeds, gross gains and gross losses are presented below.

 

                         
    Years ended December 31  
    2012     2011     2010  

Sales of securities available for sale

                        

Proceeds

   $ 14,989     $ 77,379     $ 85,892  

Gross gains

     2       1,777       675  

Gross losses

     —         —         142  

The tax effect of the proceeds from the sale of securities available for sale was $1, $622 and $187 for the years ended December 31, 2012, 2011 and 2010, respectively.

The Company pledges securities to secure retail and corporate repurchase agreements to the Federal Reserve for borrowing availability and as settlements for the fair value of swap agreements. At December 31, 2012, the Company had pledged $171.6 million of fair value or $165.7 million of amortized cost, in securities as collateral for $138.4 million in repurchase agreements, $90.9 million of fair value or $84.5 million of amortized cost, in securities as collateral for borrowing availability at the Federal Reserve with no current outstanding borrowings and $8.6 million of fair value or $12.9 million of amortized cost, in securities as collateral for $13.5 million in settlements on the fair value of swap agreements.