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Securities
 6 Months Ended
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities
Note 3 – Securities
The fair value of securities is as follows:
                                 
 
June 30, 2019
 
 
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Value
 
Available for sale
   
     
     
     
 
U.S. Treasury and federal agencies
  $
9,915
    $
2
    $
(16
 )   $
9,901
 
State and municipal
   
253,201
     
8,090
     
(1,126
 )    
260,165
 
Federal agency collateralized mortgage obligations
   
229,166
     
2,878
     
(522
 )    
231,522
 
Federal agency mortgage-backed pools
   
153,378
     
818
     
(673
 )    
153,523
 
Corporate notes
   
17,608
     
700
     
—
     
18,308
 
                                 
Total available for sale investment securities
  $
663,268
    $
12,488
    $
(2,337
 )   $
673,419
 
                                 
Held to maturity
   
     
     
     
 
State and municipal
  $
195,719
    $
6,196
    $
(220
 )   $
201,695
 
Federal agency collateralized mortgage obligations
   
4,884
     
12
     
(19
 )    
4,877
 
Federal agency mortgage-backed pools
   
13,165
     
167
     
(13
 )    
13,319
 
                                 
Total held to maturity investment securities
  $
213,768
    $
6,375
    $
(252
 )   $
219,891
 
       
 
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 June 30, 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 June 30, 2019.
The amortized cost and fair value of securities available for sale and held to maturity at June 30, 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.
                                 
 
June 30, 2019
   
December 31, 2018
 
 
Amortized
Cost
   
Fair
Value
   
Amortized
Cost
   
Fair
Value
 
Available for sale
   
     
     
     
 
Within one year
  $
26,850
    $
26,836
    $
20,532
    $
20,448
 
One to five years
   
40,560
     
40,333
     
42,476
     
41,705
 
Five to ten years
   
88,574
     
92,128
     
107,839
     
107,107
 
After ten years
   
124,740
     
129,077
     
67,020
     
67,349
 
                                 
   
280,724
     
288,374
     
237,867
     
236,609
 
Federal agency collateralized mortgage obligations
   
229,166
     
231,522
     
187,563
     
185,003
 
Federal agency mortgage-backed pools
   
153,378
     
153,523
     
183,479
     
178,736
 
                                 
Total available for sale investment securities
  $
663,268
    $
673,419
    $
608,909
    $
600,348
 
                                 
Held to maturity
   
     
     
     
 
Within one year
  $
2,481
    $
2,499
    $
70
    $
70
 
One to five years
   
56,121
     
57,124
     
48,732
     
49,324
 
Five to ten years
   
101,195
     
104,168
     
101,809
     
101,533
 
After ten years
   
35,922
     
37,904
     
40,658
     
38,749
 
                                 
   
195,719
     
201,695
     
191,269
     
189,676
 
Federal agency collateralized mortgage obligations
   
4,884
     
4,877
     
5,144
     
5,030
 
Federal agency mortgage-backed pools
   
13,165
     
13,319
     
13,699
     
13,567
 
                                 
Total held to maturity investment securities
  $
213,768
    $
219,891
    $
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.
 
June 30, 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
  $
—
    $
—
    $
3,399
    $
(16
 )   $
3,399
    $
(16
 )
State and municipal
   
72,943
     
(1,039
 )    
16,097
     
(307
 )    
89,040
     
(1,346
 )
Federal agency collateralized mortgage obligations
   
3,706
     
(1
 )    
52,991
     
(540
 )    
56,697
     
(541
 )
Federal agency mortgage-backed pools
   
1,671
     
(1
 )    
78,972
     
(685
 )    
80,643
     
(686
 )
                                                 
Total temporarily impaired securities
  $
78,320
    $
(1,041
 )   $
151,459
    $
(1,548
 )   $
229,779
    $
(2,589
 )
                                                 
       
  
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
   
Six Months Ended
 
  
June 30
   
June 30
 
  
2019
   
2018
   
2019
   
2018
 
Sales of securities available for sale
   
     
     
     
 
Proceeds
  $
74,048
    $
 —  
     $
91,635
    $
9,836
 
Gross gains
   
99
     
—  
      
158
     
37
 
Gross losses
   
(199
 )    
—  
      
(243
 )    
(26
 )