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Securities
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities
Note 3 – Securities
 
The fair value of securities is as follows:
 
 
 
March 31, 2019
 
 
 
Amortized

Cost
 
 
Gross

Unrealized

Gains
 
 
Gross

Unrealized

Losses
 
 
Fair

Value
 
Available for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies
 
$
14,087
 
 
$
—
 
 
$
(92
)
 
$
13,995
 
State and municipal
 
 
245,577
 
 
 
5,266
 
 
 
(1,083
)
 
 
249,760
 
Federal agency collateralized mortgage obligations
 
 
212,829
 
 
 
1,774
 
 
 
(1,560
)
 
 
213,043
 
Federal agency mortgage-backed pools
 
 
193,932
 
 
 
294
 
 
 
(1,961
)
 
 
192,265
 
Corporate notes
 
 
17,598
 
 
 
481
 
 
 
—
 
 
 
18,079
 
Total available for sale investment securities
 
$
684,023
 
 
$
7,815
 
 
$
(4,696
)
 
$
687,142
 
Held to maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State and municipal
 
$
187,847
 
 
$
4,053
 
 
$
(330
)
 
$
191,570
 
Federal agency collateralized mortgage obligations
 
 
5,019
 
 
 
8
 
 
 
(48
)
 
 
4,979
 
Federal agency mortgage-backed pools
 
 
13,461
 
 
 
152
 
 
 
(56
)
 
 
13,557
 
Total held to maturity investment securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
206,327
 
 
$
4,213
 
 
$
(434
)
 
$
210,106
 
 
 
 
December 31, 2018
 
 
 
Amortized

Cost
 
 
Gross

Unrealized

Gains
 
 
Gross

Unrealized

Losses
 
 
Fair

Value
 
Available for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies
 
$
16,815
 
 
$
1
 
 
$
(208
)
 
$
16,608
 
State and municipal
 
 
210,386
 
 
 
1,495
 
 
 
(2,578
)
 
 
209,303
 
Federal agency collateralized mortgage obligations
 
 
187,563
 
 
 
625
 
 
 
(3,185
)
 
 
185,003
 
Federal agency mortgage-backed pools
 
 
183,479
 
 
 
80
 
 
 
(4,823
)
 
 
178,736
 
Corporate notes
 
 
10,666
 
 
 
107
 
 
 
(75
)
 
 
10,698
 
Total available for sale investment securities
 
$
608,909
 
 
$
2,308
 
 
$
(10,869
)
 
$
600,348
 
Held to maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State and municipal
 
$
191,269
 
 
$
1,773
 
 
$
(3,366
)
 
$
189,676
 
Federal agency collateralized mortgage obligations
 
 
5,144
 
 
 
6
 
 
 
(120
)
 
 
5,030
 
Federal agency mortgage-backed pools
 
 
13,699
 
 
 
74
 
 
 
(206
)
 
 
13,567
 
Total held to maturity investment securities
 
$
210,112
 
 
$
1,853
 
 
$
(3,692
)
 
$
208,273
 
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 and held-to-maturity, 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 March 31, 2019, 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, U.S. Treasury and federal agencies, federal agency collateralized mortgage obligations, 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 March 31, 2019.
 
The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2019 and December 31, 2018, 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.
 
 
 
March 31, 2019
 
 
December 31, 2018
 
 
 
Amortized

Cost
 
 
Fair

Value
 
 
Amortized

Cost
 
 
Fair

Value
 
Available for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Within one year
 
$
29,589
 
 
$
29,552
 
 
$
20,532
 
 
$
20,448
 
One to five years
 
 
52,250
 
 
 
51,759
 
 
 
42,476
 
 
 
41,705
 
Five to ten years
 
 
100,190
 
 
 
102,334
 
 
 
107,839
 
 
 
107,107
 
After ten years
 
 
95,233
 
 
 
98,189
 
 
 
67,020
 
 
 
67,349
 
 
 
 
277,262
 
 
 
281,834
 
 
 
237,867
 
 
 
236,609
 
Federal agency collateralized mortgage obligations
 
 
212,829
 
 
 
213,043
 
 
 
187,563
 
 
 
185,003
 
Federal agency mortgage-backed pools
 
 
193,932
 
 
 
192,265
 
 
 
183,479
 
 
 
178,736
 
Private labeled mortgage-backed pools
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Total available for sale investment securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
684,023
 
 
$
687,142
 
 
$
608,909
 
 
$
600,348
 
Held to maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Within one year
 
$
150
 
 
$
150
 
 
$
70
 
 
$
70
 
One to five years
 
 
50,317
 
 
 
51,152
 
 
 
48,732
 
 
 
49,324
 
Five to ten years
 
 
99,413
 
 
 
101,178
 
 
 
101,809
 
 
 
101,533
 
After ten years
 
 
37,967
 
 
 
37,207
 
 
 
40,658
 
 
 
38,749
 
 
 
 
187,847
 
 
 
189,687
 
 
 
191,269
 
 
 
189,676
 
Federal agency collateralized mortgage obligations
 
 
5,019
 
 
 
4,979
 
 
 
5,144
 
 
 
5,030
 
Federal agency mortgage-backed pools
 
 
13,461
 
 
 
13,557
 
 
 
13,699
 
 
 
13,567
 
Total held to maturity investment securities
 
$
206,327
 
 
$
208,223
 
 
$
210,112
 
 
$
208,273
 
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.
 
 
 
March 31, 2019
 
 
 
Less than 12 Months
 
 
12 Months or More
 
 
Total
 
 
 
Fair

Value
 
 
Unrealized

Losses
 
 
Fair

Value
 
 
Unrealized

Losses
 
 
Fair

Value
 
 
Unrealized

Losses
 
Investment Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies
 
$
—
 
 
$
—
 
 
$
9,823
 
 
$
(92
)
 
$
9,823
 
 
$
(92
)
State and municipal
 
 
65,265
 
 
 
(697
)
 
 
44,783
 
 
 
(2,500
)
 
 
110,048
 
 
 
(3,197
)
Federal agency collateralized mortgage obligations
 
 
431
 
 
 
(1
)
 
 
100,886
 
 
 
(1,607
)
 
 
101,317
 
 
 
(1,608
)
Federal agency mortgage-backed pools
 
 
—
 
 
 
—
 
 
 
152,582
 
 
 
(2,017
)
 
 
152,582
 
 
 
(2,017
)
Corporate notes
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Total temporarily impaired securities
 
$
65,696
 
 
$
(698
)
 
$
308,074
 
 
$
(6,216
)
 
$
373,770
 
 
$
(6,914
)
 
 
 
December 31, 2018
 
 
 
Less than 12 Months
 
 
12 Months or More
 
 
Total
 
 
 
Fair

Value
 
 
Unrealized

Losses
 
 
Fair

Value
 
 
Unrealized

Losses
 
 
Fair

Value
 
 
Unrealized

Losses
 
Investment Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies
 
$
—
 
 
$
—
 
 
$
9,707
 
 
$
(208
)
 
$
9,707
 
 
$
(208
)
State and municipal
 
 
75,163
 
 
 
(1,628
)
 
 
106,335
 
 
 
(4,316
)
 
 
181,498
 
 
 
(5,944
)
Federal agency collateralized mortgage obligations
 
 
6,450
 
 
 
(25
)
 
 
106,257
 
 
 
(3,280
)
 
 
112,707
 
 
 
(3,305
)
Federal agency mortgage-backed pools
 
 
5,739
 
 
 
(39
)
 
 
175,865
 
 
 
(4,990
)
 
 
181,604
 
 
 
(5,029
)
Corporate notes
 
 
5,263
 
 
 
(75
)
 
 
—
 
 
 
—
 
 
 
5,263
 
 
 
(75
)
Total temporarily impaired securities
 
$
92,615
 
 
$
(1,767
)
 
$
398,164
 
 
$
(12,794
)
 
$
490,779
 
 
$
(14,561
)
 
Information regarding security proceeds, gross gains and gross losses are presented below.
 
 
 
Three Months Ended

March 31
 
 
 
2019
 
 
2018
 
Sales of securities available for sale
 
 
 
 
 
 
 
 
Proceeds
 
$
17,587
 
 
$
9,836
 
Gross gains
 
 
59
 
 
 
37
 
Gross losses
 
 
(44
)
 
 
(26
)