NOTE

11:

OTHER BORROWINGS AND SUBORDINATED DEBENTURES

Debt at

December 31, 2017

and

2016

consisted of the following components.

(In thousands)	2017		2016

Other Borrowings
FHLB advances, net of discount, due 2018 to 2033, 1.20% to 7.37% secured by residential real estate loans	$	1,261,642	$	225,230
Revolving credit agreement, due 10/5/2018, floating rate of 1.50% above the one month LIBOR rate, unsecured		75,000		--
Notes payable, due 10/15/2020, 3.85%, fixed rate, unsecured		43,382		47,929
Total other borrowings		1,380,024		273,159

Subordinated Debentures
Trust preferred securities, due 12/30/2033, floating rate of 2.80% above the three month LIBOR rate, reset quarterly, callable without penalty		20,620		20,620
Trust preferred securities, net of discount, due 6/30/2035, floating rate of 1.75% above the three month LIBOR rate, reset quarterly, callable without penalty		9,327		9,225
Trust preferred securities, net of discount, due 9/15/2037, floating rate of 1.37% above the three month LIBOR rate, reset quarterly		10,284		10,130
Trust preferred securities, net of discount, due 12/5/2033, floating rate of 2.88% above the three month LIBOR rate, reset quarterly, callable without penalty		5,156		5,161
Trust preferred securities, net of discount, due 10/18/2034, floating rate of 2.00% above the three month LIBOR rate, reset quarterly, callable without penalty		5,148		5,105
Trust preferred securities, net of discount, due 6/6/2037, floating rate of 1.57% above the three month LIBOR rate, reset quarterly, callable without penalty		10,288		10,156
Trust preferred securities, due 12/15/2035, floating rate of 1.45% above the three month LIBOR rate, reset quarterly, callable without penalty		6,702		--
Trust preferred securities, due 6/26/2033, floating rate of 3.10% above the three month LIBOR rate, reset quarterly, callable without penalty		20,619		--
Trust preferred securities, due 10/7/2033, floating rate of 2.85% above the three month LIBOR rate, reset quarterly, callable without penalty		25,774		--
Trust preferred securities, due 9/15/2037, floating rate of 2.00% above the three month LIBOR rate, reset quarterly, callable without penalty		8,248		--
Other subordinated debentures, net of discount, due 9/30/2023, floating rate equal to daily average of prime rate, reset quarterly		18,399		--
Total subordinated debentures		140,565		60,397
Total other borrowings and subordinated debentures	$	1,520,589	$	333,556

In connection with the OKSB and First Texas acquisitions on

October 19, 2017,

the Company assumed subordinated debt in an aggregate principal amount, net of discounts, of

$75.9

million. The Company assumed subordinated debt of

$6.7

million in connection with the Hardeman acquisition in

May 15, 2017.

October 2017,

the Company entered into a Revolving Credit Agreement (the “Credit Agreement”) with U.S. Bank National Association and executed an unsecured Revolving Credit Note pursuant to which the Company

may

borrow, prepay and re-borrow up to

$75.0

million, the proceeds of which were primarily used to pay off amounts outstanding under a term note assumed with the First Texas acquisition. The Credit Agreement contains customary representations, warranties, and covenants of the Company, including, among other things, covenants that impose various financial ratio requirements. The line of credit available to the Company under the Credit Agreement expires on

October 5, 2018,

at which time all amounts borrowed, together with applicable interest, fees, and other amounts owed by the Company shall be due and payable.

During

October 2015,

the Company borrowed

$52.3

million from correspondent banks at a rate of

3.85%

with quarterly principal and interest payments. The debt has a

year amortization with a

year balloon payment due in

October 2020.

The Company used approximately

$36.0

million of this borrowing to refinance the debt issued during

2013

that was used to partially fund the acquisition of Metropolitan.

December 31, 2017,

the Company had

$1.1

billion of Federal Home Loan Bank (“FHLB”) advances outstanding with original maturities of

one

year or less.

The Company had total FHLB advances of

$1.3

billion at

December 31, 2017,

with approximately

$2.258

billion of additional advances available from the FHLB. The FHLB advances are secured by mortgage loans and investment securities totaling approximately

$3.785

billion at

December 31, 2017.

The trust preferred securities are tax-advantaged issues that qualified for Tier

capital treatment until

December 31, 2017,

when the Company reached

$15

billion in assets. They still qualify for inclusion as Tier

capital at

December 31, 2017.

Distributions on these securities are included in interest expense on long-term debt. Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds thereof in junior subordinated debentures of the Company, the sole asset of each trust. The preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are wholly-owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated debentures. The Company’s obligations under the junior subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust.

The Company’s long-term debt includes subordinated debt, notes payable and FHLB advances with an original maturity of greater than

one

year. Aggregate annual maturities of long-term debt at

December 31, 2017

are as follows:

Year	(In thousands)

2018	$	23,093
2019		7,486
2020		36,222
2021		2,165
2022		1,314
Thereafter		148,307

Total	$	218,587