Regulatory Capital

12 Months Ended

Dec. 31, 2024

Regulatory Capital Requirements under Banking Regulations [Abstract]

Horizon and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. These capital requirements implement changes arising from the Dodd–Frank Wall Street Reform and Consumer Protection Act and the U.S. Basel Committee on Banking Supervision’s capital framework (known as “Basel III”). Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators, which if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective actions, the Company and Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off–balance–sheet items as calculated under regulatory accounting

practices. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Company and Bank are subject to minimum regulatory capital requirements as defined and calculated in accordance with the Basel III–based regulations. As allowed under Basel III rules, the Company made the decision to opt–out of including accumulated other comprehensive income in regulatory capital. The minimum regulatory capital requirements are set forth in the table below.

In addition, to be categorized as well capitalized, the Company and Bank must maintain Total risk–based, Tier I risk–based, common equity Tier I risk–based and Tier I leverage ratios as set forth in the table below. As of December 31, 2024 and December 31, 2023, the Company and Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the end of the year 2024 that management believes have changed the Bank’s classification as well capitalized. There is no threshold for well capitalized status for bank holding companies.

The following table presents Horizon and the Bank’s actual and required capital ratios as of December 31, 2024 and December 31, 2023, as well as the revisions to Horizon's regulatory capital ratios to reflect the correction of the capital computations for the foregoing periods:


	Actual				Required for Capital Adequacy Purposes(1)				Required For Capital Adequacy Purposes with Capital Buffer(1)				Well Capitalized Under Prompt Corrective Action Provisions(1)
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2024
Total capital (to risk–weighted assets)(1)
Consolidated	$	800,209	13.91	%	$	460,266	8.00	%	$	604,099	10.50	%	N/A		N/A
Bank	725,383		12.64	%	459,039		8.00	%	602,489		10.50	%	$	573,799	10.00	%
Tier 1 capital (to risk–weighted assets)(1)
Consolidated	690,183		12.00	%	345,199		6.00	%	489,033		8.50	%	N/A		N/A
Bank	671,095		11.70	%	344,279		6.00	%	487,729		8.50	%	459,039		8.00	%
Common equity tier 1 capital (to risk–weighted assets)(1)
Consolidated	632,760		11.00	%	258,900		4.50	%	402,733		7.00	%	N/A		N/A
Bank	671,095		11.70	%	258,209		4.50	%	401,659		7.00	%	372,969		6.50	%
Tier 1 capital (to average assets)(1)
Consolidated	690,183		8.88	%	310,825		4.00	%	310,825		4.00	%	N/A		N/A
Bank	671,095		8.64	%	310,539		4.00	%	310,539		4.00	%	388,174		5.00	%
	Actual				Required for Capital Adequacy Purposes(1)				Required For Capital Adequacy Purposes with Capital Buffer(1)				Well Capitalized Under Prompt Corrective Action Provisions(1)
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2023
Total capital (to risk–weighted assets)(1)
Consolidated (As Revised)*	$	782,598	14.04	%	$	446,000	8.00	%	$	585,374	10.50	%	N/A		N/A
Consolidated (As Reported)	786,436		14.11	%	446,000		8.00	%	585,374		10.50	%	N/A		N/A
Bank	714,402		12.87	%	444,147		8.00	%	582,943		10.50	%	$	555,184	10.00	%


Tier 1 capital (to risk–weighted assets)(1)
Consolidated (As Revised)*	676,411	12.13	%	334,500	6.00	%	473,874	8.50	%	N/A		N/A
Consolidated (As Reported)	735,792	13.20	%	334,500	6.00	%	473,874	8.50	%	N/A		N/A
Bank	663,758	11.96	%	333,111	6.00	%	471,907	8.50	%	$	444,147	8.00	%
Common equity tier 1 capital (to risk–weighted assets)(1)
Consolidated	619,153	11.11	%	250,875	4.50	%	390,250	7.00	%	N/A		N/A
Bank	663,758	11.96	%	249,833	4.50	%	388,629	7.00	%	$	360,870	6.50	%
Tier 1 capital (to average assets)(1)
Consolidated (As Revised)*	676,411	8.61	%	314,306	4.00	%	314,306	4.00	%	N/A		N/A
Consolidated (As Reported)	735,792	9.36	%	314,306	4.00	%	314,306	4.00	%	N/A		N/A
Bank	663,758	8.41	%	315,550	4.00	%	315,550	4.00	%	$	394,438	5.00	%
(1)As defined by regulatory agencies
*Prior periods have been revised (see FN 1 disclosures for the Revision of Previously Issued Financial Statements)

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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