UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 4, 2009
Date of Report (Date of earliest event reported): December 21, 2009
HORIZON FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
Washington	0-27062	91-1695422
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)
1500 Cornwall Avenue, Bellingham, Washington		98225
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number (including area code): (360) 733-3050
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.
G Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
G Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
G Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
G Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8 3.01 Notice ~~Other~~of Delisting or Failure to Satisfy a Continued Listing ~~Events.~~Rule or Standard; Transfer of Listing

On December 421, 2009, Horizon ~~Bank~~Financial Corp. (the “~~Bank~~Company”), received a ~~wholly~~notice from ~~owned~~The ~~subsidiary~~NASDAQ ofStock ~~Horizon~~Market ~~Financial~~stating ~~Corp.~~that (for the ~~“Company”),~~last 30 consecutive business ~~received~~days, the Company’s common stock has not maintained a ~~Supervisory~~minimum ~~Prompt~~market ~~Corrective~~value ~~Action~~of publicly ~~Directive~~held ~~(the~~shares (“~~Directive~~MVPHS”) ~~from~~of $5,000,000 as required for continued listing on the ~~Federal~~Nasdaq ~~Deposit~~Global ~~Insurance~~Select ~~Corporation~~Market or Nasdaq Global Market under Nasdaq Listing Rule 5450(b)(1)(C) (the “~~FDIC~~Rule”). In ~~due~~accordance towith ~~the~~Nasdaq ~~Bank’s~~Listing ~~“critically~~Rule ~~undercapitalized”~~5810(c)(3)(D), ~~status~~the asCompany ofwill ~~September~~be ~~30,~~provided ~~2009~~90 ~~under~~calendar ~~regulatory~~days, or until ~~capital~~March ~~guidelines. The~~22, ~~Bank~~2010, ~~was~~to ~~also~~regain ~~recently~~compliance. If, ~~notified~~at ~~that~~anytime ~~the~~before ~~FDIC~~March 22, ~~did~~2010, ~~not~~the ~~accept~~MVPHS of the ~~Bank~~Company’s ~~Capital~~common ~~Restoration Plan. As~~stock ~~noted~~is ~~below~~$5,000,000 ~~before~~or ~~its~~greater ~~receipt~~for a minimum of ~~the~~10 consecutive ~~Directive~~trading days, NASDAQ will provide the Company written notification ~~Bank~~that ~~was~~the ~~already~~Company ~~subject~~complies towith ~~many~~the ofRule. If compliance with the ~~restrictions~~Rule cannot ofbe demonstrated by March 22, 2010, NASDAQ will provide the ~~Directive~~Company written ~~and~~notification ~~was~~that the Company’s securities will be delisted, at which ~~already~~time ~~addressing~~the ~~these~~Company ~~items~~may appeal the determination.

~~The Directive provides that within 30~~During ~~days of~~ the ~~effective~~90 ~~date~~calendar ofday ~~the~~period ~~Directive~~described ~~(by January 2~~above, ~~2010),~~ the ~~Bank~~Company ~~must: (1) sell enough voting shares or obligations of the Bank so that the Bank~~ will be ~~“adequately~~consider ~~capitalized” under regulatory capital guidelines; and/or (2)~~its ~~accept~~alternatives, anincluding ~~offer~~whether to beapply ~~acquired by a depository institution holding company or combine with another insured depository institution. While the Bank continues~~ to ~~act~~transfer ~~upon both tactical and strategic alternatives to raise capital and restructure~~ its ~~balance~~securities ~~sheet, as has been widely publicized, access~~ to ~~capital~~ ~~markets is extremely limited in the current economic environment, making~~The itNasdaq ~~highly~~Capital ~~unlikely that in the current financial environment and in light of its capital position its efforts will be successful and result in sufficient capital infusion in order to comply with the Directive~~Market.

~~The~~A ~~Directive~~copy ~~also prohibits the Bank from: (1) accepting, renewing or rolling over any brokered deposits; (2) paying interest on deposits in excess~~ of ~~prescribed limits; (3) allowing its average~~ ~~total assets during any calendar quarter to exceed its average total assets during~~ the ~~preceding~~press ~~calendar~~release ~~quarter;~~relating ~~(4) making any capital distributions or dividend payments~~ to ~~the~~this ~~Company~~announcement oris ~~any~~attached ~~affiliate~~as ofExhibit ~~the Bank or the Company; and (5) establishing or acquiring a new branch and requires the Bank to obtain the approval of the FDIC prior to relocating, selling or disposing of any existing branch~~99. In addition, the Directive provides that the Bank may not pay any bonus to, or increase the compensation of, any director or officer of the Bank without the prior approval of the FDIC, and the Bank must comply with Section 23A of the Federal Reserve Act without the exemption for transactions with certain affiliated institutions. Lastly the Bank may take no further action under the previously issued FDIC Order issued on May 24, 1994 allowing the Bank to engage in real estate development for single-family residential use up to 25% of the Bank’s Tier 1 ~~capital. The Bank was already substantially subject to each of these prohibitions prior to the issuance of the Directive,~~ and ~~since earlier this year, key components of the Bank’s business~~ ~~strategy~~is ~~have~~incorporated ~~included~~herein ~~the~~by ~~reduction in its asset base and brokered deposits~~reference.

~~The~~On November ~~foregoing~~10, ~~description~~2009, of the ~~Directive~~ isCompany ~~qualified~~filed ina ~~its~~Current ~~entirety~~Report byon ~~reference~~Form to8-K with the Securities ~~full~~and ~~text~~Exchange Commission (“November Form 8-K”) reporting receipt of a letter from The NASDAQ Stock Market indicating that, for the 30 consecutive ~~Directive~~business days preceding the date of that letter, athe ~~copy~~bid price of ~~which~~the isCompany’s common ~~attached~~stock ashad ~~Exhibit~~closed 99below the $1.00 minimum bid price required for continued listing on the Nasdaq Global Market under Marketplace Rule 5450(a)(1). The Company has until May 5, 2010, to ~~this~~regain ~~report~~compliance with ~~and~~the isminimum bid price rule. Additional details regarding the ~~incorporated~~November ~~herein~~10, by2009 ~~reference~~NASDAQ notice is contained in the November Form 8-K.

Item 9.01. - Financial Statements and Exhibits.

(d)	Exhibits
Exhibit No.		Description
99.1	~~Supervisory Prompt Corrective Action of the Federal Deposit Insurance Corporation dated December 3, 2009.~~	Horizon Financial Corp. Press Release dated December 28, 2009

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	HORIZON FINANCIAL CORP.
Date: December 8, 2009	By:	/s/ Richard P. Jacobson
Date: December 28, 2009	By:	/s/ Richard P. Jacobson
		Richard P. Jacobson
		Chief Executive Officer and President

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