Derivative financial instruments (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Financial Instruments

The following tables summarize the fair value of derivative financial instruments utilized by Horizon Bancorp:

	Asset Derivative			Liability Derivatives
	September 30, 2013			September 30, 2013
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments (Unaudited)
Interest rate contracts	Loans	$	23	Other liabilities	$	579
Interest rate contracts	Other Assets		556	Other liabilities		3,435
Total derivatives designated as hedging instruments			579			4,014
Derivatives not designated as hedging instruments
Mortgage loan contracts	Other assets		619	Other liabilities		—
Total derivatives not designated as hedging instruments			619			—
Total derivatives		$	1,198		$	4,014

	Asset Derivative			Liability Derivatives
	December 31, 2012			December 31, 2012
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments (Unaudited)
Interest rate contracts	Loans	$	279	Other liabilities	$	2,214
Interest rate contracts	Other Assets		1,935	Other liabilities		5,493
Total derivatives designated as hedging instruments			2,214			7,707
Derivatives not designated as hedging instruments
Mortgage loan contracts	Other assets		858	Other liabilities		—
Total derivatives not designated as hedging instruments			858			—
Total derivatives		$	3,072		$	7,707

Effect of the Derivative Instruments on the Consolidated Statement of Income Derivative in Cash Flow Hedging Relationship

The effect of the derivative instruments on the condensed consolidated statement of income for the three and nine month periods ending 2013 and 2012 is as follows:

	Comprehensive Income on Derivative (Effective Portion)					Comprehensive Income on Derivative (Effective Portion)
	Three Months Ended September 30					Nine Months Ended September 30
Derivative in cash flow hedging relationship	2013 (Unaudited)		2012 (Unaudited)			2013 (Unaudited)		2012 (Unaudited)
Interest rate contracts	$	25	$	(169	)	$	1,338	$	(588	)

Effect of the Derivative Instruments on the Consolidated Statement of Income Derivative in Fair Value Hedging Relationship

Topic 820-10-55 establishes a fair value hierarchy that emphasizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value.

		Amount of Gain (Loss) Recognized on Derivative						Amount of Gain (Loss) Recognized on Derivative
		Three Months Ended September 30						Nine Months Ended September 30
Derivative in fair value hedging relationship	Location of gain (loss) recognized on derivative	2013 (Unaudited)			2012 (Unaudited)			2013 (Unaudited)			2012 (Unaudited)
Interest rate contracts	Interest income - loans	$	211		$	112		$	(1,635	)	$	336
Interest rate contracts	Interest income - loans		(211	)		(112	)		1,635			(336	)
Total		$	—		$	—		$	—		$	—

		Amount of Gain (Loss) Recognized on Derivative				Amount of Gain (Loss) Recognized on Derivative
		Three Months Ended September 30				Nine Months Ended September 30
Derivative not designated as hedging relationship	Location of gain (loss) recognized on derivative	2013 (Unaudited)		2012 (Unaudited)		2013 (Unaudited)			2012 (Unaudited)
Mortgage contracts	Other income - gain on sale of loans	$	169	$	320	$	(239	)	$	600