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 21, 2009
Date of Report (Date of earliest event reported): January 8, 2010
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
c/o Thomas A. Sterken Keller Rohrback L.L.P. Registered Agent of Horizon Financial Corp. 1201 Third Avenue, Suite 3200 Seattle, Washington		98101
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number (including area code): (360) 733-3050
Registrant’s telephone number (including area code): (206) 224-7585
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.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
G Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
G Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] 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 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
G Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 3 1.~~01 Notice~~03 Bankruptcy ~~of Delisting~~ or ~~Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing~~Receivership

On ~~December~~ 21Friday, ~~2009~~January 8, 2010, Horizon Bank ~~Financial Corp.~~ (the “~~Company~~Bank”) ~~received a notice from The NASDAQ Stock Market stating that for the last 30 consecutive business days~~, the ~~Company’s~~wholly-owned ~~common~~subsidiary ~~stock~~and ~~has~~principal ~~not~~asset ~~maintained a minimum market value~~ of ~~publicly~~ ~~held shares (“MVPHS”) of $5,000,000 as required for continued listing~~Horizon onFinancial ~~the~~Corp. ~~Nasdaq Global Select Market or Nasdaq Global Market under Nasdaq Listing Rule 5450~~(~~b)(1)(C) (~~the “~~Rule~~Company”)~~. In accordance with Nasdaq Listing Rule 5810(c)(3)(D)~~, ~~the~~was ~~Company~~closed ~~will~~by ~~be provided 90 calendar days, or until March 22, 2010, to regain compliance. If, at anytime before March 22, 2010,~~ the ~~MVPHS~~State of ~~the Company’s common stock is $5~~Washington,~~000,000 or greater for a~~ ~~minimum~~Department of ~~10 consecutive~~Financial ~~trading days~~Institutions, ~~NASDAQ~~Division ~~will~~of ~~provide~~Banks (the ~~Company~~“DFI”) ~~written~~and ~~notification that~~ the ~~Company complies with the Rule. If compliance with the Rule~~ ~~cannot~~Federal beDeposit ~~demonstrated~~Insurance byCorporation ~~March 22, 2010, NASDAQ will provide~~ (the ~~Company written~~“FDIC”) ~~notification~~was ~~that~~appointed ~~the~~as ~~Company’s~~receiver ~~securities will be delisted, at which~~of ~~time~~ the ~~Company may appeal the determination~~Bank.

~~During the~~In 90connection ~~calendar~~with ~~day~~the ~~period~~closure ~~described~~of Horizon ~~above~~Bank, the ~~Company~~FDIC ~~will~~issued ~~consider~~a ~~its alternatives~~press release, ~~including~~dated ~~whether~~January to8, ~~apply~~2010, ~~to transfer its securities to The~~announcing ~~Nasdaq~~the ~~Capital Market.~~following:

A• ~~copy~~The FDIC entered into a purchase and assumption agreement with Washington Federal Savings and Loan Association, Seattle, Washington (“Washington Federal”), to assume all of the ~~press~~deposits ~~release~~of ~~relating~~Horizon toBank. ~~this~~• ~~announcement~~Horizon isBank’s ~~attached~~18 full service offices will reopen on January 9, 2010, as ~~Exhibit~~branches 99of Washington Federal.1 ~~and is~~Depositors ~~incorporated~~of ~~herein~~Horizon Bank will automatically become depositors of Washington Federal. Deposits will continue to be insured by ~~reference~~the FDIC, up to the applicable limits established by law. • In addition to assuming Horizon Bank’s deposits, Washington Federal agreed to purchase essentially all of the assets of Horizon Bank. • Customers who have questions about the foregoing matters, or who would like more information about the closure of Horizon Bank, can visit the FDIC’s Internet website located at http://www.fdic.gov/bank/individual/failed/horizon-wa.html , or call the FDIC toll-free at 1-800-430-6165.

~~On November~~A ~~10,~~complete ~~2009,~~copy ~~the Company filed a Current Report on Form 8-K with the Securities and Exchange Commission (“November Form 8-K”) reporting receipt~~ of ~~a letter from The NASDAQ Stock Market indicating that, for~~ the ~~30 consecutive business days preceding the date of that letter, the bid price of the Company~~FDIC’s press ~~common~~release ~~stock~~can ~~had~~be ~~closed~~found ~~below the $1.00 minimum bid price required for continued listing~~ on the ~~Nasdaq~~Internet ~~Global~~at ~~Market under Marketplace Rule 5450(a)(1)~~http://www. ~~The Company has until May 5,~~ fdic.gov/news/news/press/2010~~, to regain compliance~~/pr10004.html ~~with the minimum bid price rule~~. ~~Additional details regarding the~~ ~~November~~ ~~10, 2009 NASDAQ notice is contained in the November Form~~ ~~8-K.~~

Item 9 5.0102 Departure -of ~~Financial~~Certain ~~Statements~~Officers; ~~and~~Election ~~Exhibits.~~of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

	Exhibit No.		Description
	99.1		Horizon Financial Corp. Press Release dated December 28, 2009

On January 8, 2010, immediately following the closure of the Bank, all of its directors resigned from the board of directors of Horizon Bank: Robert C. Diehl, V. Lawrence Evans, Gary E. Goodman, Richard P. Jacobson, Robert C. Tauscher, and James A. Strengholt. In addition, Mr. Richard P. Jacobson resigned as President and Chief Executive Officer and from the Board of Directors of Horizon Financial Corp., and Mr. V. Lawrence Evans, Chairman of the Board, agreed to serve as President and Chief Executive Officer of the Company, replacing Mr. Jacobson in that role. Mr. Evans will serve without an employment contract and without compensation.

Item 8.01 Other Events

The Company’s shares of Horizon Bank were its principal asset. The Company does not expect to receive anything from FDIC or the purchaser of the Bank, for the Company’s interest in the Bank. Accordingly, as a result of the Company’s current financial condition, the board of directors of the Company has retained special counsel to evaluate the Company’s options for winding down the affairs of the Company. The alternatives under consideration include the dissolution and winding up of the Company by its board of directors, pursuant to the Washington Business Corporation Act, or filing a voluntary petition seeking relief under Chapter 7 of Title 11 of the United States Code.

A copy of the Company’s press release regarding the foregoing event is filed as Exhibit 99.1 to this current report on Form 8-K.

Item 9.01 Financial Statements and Exhibits


	(d)	Exhibits

The following exhibit is being filed herewith and this list shall constitute the exhibit index.

	99.1	Press release dated January 8, 2010.

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 28, 2009	By:	/s/ Richard P. Jacobson
Date: January 8, 2010	By:	/s/ V. Lawrence Evans
		Richard P. Jacobson
		V. Lawrence Evans
		Chief Executive Officer and President

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