Securities

6 Months Ended

Jun. 30, 2011

Securities [Abstract]

Securities

Note 2 — Securities

The fair value of securities is as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
June 30, 2011 (Unaudited)	Cost		Gains		Losses			Value
Available for sale
U.S. Treasury and federal agencies	$	19,468	$	311	$	(9	)	$	19,770
State and municipal		134,371		4,488		(225	)		138,634
Federal agency collateralized mortgage obligations		130,406		3,300		—			133,706
Federal agency mortgage-backed pools		147,936		4,933		(11	)		152,858
Private labeled mortgage-backed pools		4,157		126		—			4,283
Corporate notes		569		7		(10	)		566
Total available for sale investment securities	$	436,907	$	13,165	$	(255	)	$	449,817
Held to maturity, State and Municipal	$	10,632	$	—	$	—		$	10,632

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
December 31, 2010	Cost		Gains		Losses			Value
Available for sale
U.S. Treasury and federal agencies	$	24,727	$	643	$	(119	)	$	25,251
State and municipal		132,380		1,511		(2,402	)		131,489
Federal agency collateralized mortgage obligations		100,106		1,945		(214	)		101,837
Federal agency mortgage-backed pools		114,390		3,865		(360	)		117,895
Private labeled mortgage-backed pools		5,197		126		—			5,323
Corporate notes		555		—		(6	)		549
Total available for sale investment securities	$	377,355	$	8,090	$	(3,101	)	$	382,344
Held to maturity, State and Municipal	$	9,595	$	—	$	—		$	9,595

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 June 30, 2011, 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 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 June 30, 2011.

The amortized cost and fair value of securities available for sale and held to maturity at June 30, 2011 and December 31, 2010, 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, 2011 (Unaudited)
	Amortized		Fair
	Cost		Value
Available for sale
Within one year	$	970	$	977
One to five years		26,845		27,834
Five to ten years		56,701		58,432
After ten years		69,892		71,728
		154,408		158,971
Federal agency collateralized mortgage obligations		130,406		133,706
Federal agency mortgage-backed pools		147,936		152,857
Private labeled mortgage-backed pools		4,157		4,283
Total available for sale investment securities	$	436,907	$	449,817
Held to maturity
Within one year	$	10,532	$	10,532
One to five years		100		100
Total held to maturity investment securities	$	10,632	$	10,632

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.

	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
June 30, 2011 (Unaudited)	Value		Losses			Value		Losses			Value		Losses
U.S. Treasury and federal agencies	$	5,048	$	(9	)	$	—	$	—		$	5,048	$	(9	)
State and municipal		9,794		(215	)		797		(10	)		10,591		(225	)
Federal agency collateralized mortgage obligations		—		—			—		—			—		—
Federal agency mortgage-backed pools		580		(11	)		28		—			608		(11	)
Corporate notes		—		(10	)		—		—			—		(10	)
Total temporarily impaired securities	$	15,422	$	(245	)	$	825	$	(10	)	$	16,247	$	(255	)

	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2010	Value		Losses			Value		Losses			Value		Losses
U.S. Treasury and federal agencies	$	9,881	$	(119	)	$	—	$	—		$	9,881	$	(119	)
State and municipal		60,401		(2,370	)		568		(32	)		60,969		(2,402	)
Federal agency collateralized mortgage obligations		21,130		(214	)		—		—			21,130		(214	)
Federal agency mortgage-backed pools		27,033		(360	)		32		—			27,065		(360	)
Corporate notes		26		(6	)		—		—			26		(6	)
Total temporarily impaired securities	$	118,471	$	(3,069	)	$	600	$	(32	)	$	119,071	$	(3,101	)

	Three months ended June 30				Six months ended June 30
	2011		2010		2011		2010
Sales of securities available for sale (Unaudited)
Proceeds	$	8,116	$	18,938	$	17,390	$	18,938
Gross gains		365		135		639		135
Gross losses		—		4		—		4