NOTE PAYABLE AND LINES OF CREDIT	12 Months Ended
Dec. 31, 2017
NOTE PAYABLE AND LINES OF CREDIT
NOTE PAYABLE AND LINES OF CREDIT	NOTE 11: NOTE PAYABLE AND LINES OF CREDIT Note Payable In conjunction with the acquisition of MCBI, the Company entered into a loan agreement on February 1, 2015 for $31.0 million. On November 13, 2017, we paid the then remaining outstanding balance in full. Interest paid was $1.1 million and $1.1 million for the years ended December 31, 2017 and 2016, respectively. Frost Line of Credit On December 13, 2017, the Company entered into a loan agreement, or the Loan Agreement, with Frost Bank, or the Lender, which provides for a $30.0 million revolving line of credit, or the Line of Credit. The Company can make draws on the Line of Credit for a period of 12 months beginning on the date of the Loan Agreement, after which the Company will not be permitted to make further draws and the outstanding balance will amortize over a period of 60 months. Interest accrues on outstanding borrowings at a rate equal to the maximum “Latest” “U.S.” prime rate of interest per annum and payable quarterly in the first 12 months and thereafter quarterly principal and interest payments are required over a term of 60 months. The entire outstanding balance and unpaid interest shall be payable in full on December 13, 2023. The Company may prepay the principal amount of any loan under the Loan Agreement without premium or penalty. The Company can use the proceeds from the Loan Agreement for the purpose of financing acquisitions and other general corporate purposes, including capital augmentation. The obligations of the Company under the Loan Agreement are secured by a valid and perfected first priority lien on all of the issued and outstanding shares of capital stock of the Bank. Covenants made under the Loan Agreement include, among other things, the Company maintaining tangible net worth of not less than $240 million, the Company maintaining free cash flow coverage ratio of not less than 1.25 to 1.00, the Bank’s Texas Ratio (as defined under the Loan Agreement) not to exceed 15%, the Bank’s Total Capital Ratio (as defined under the Loan Agreement) of not less than 12% and restrictions on the ability of the Company and its subsidiaries to incur certain additional debt. The Company was in compliance with these covenants at December 31, 2017. As of December 31, 2017, there were no outstanding borrowings on this line and the Company did not draw on this line during the period from December 13, 2017, when the Company entered the agreement, to December 31, 2017. Additional Lines of Credit The FHLB allows us to borrow on a blanket floating lien status collateralized by certain loans. As of December 31, 2017 and 2016, total borrowing capacity of $793.3 million and $767.8 million, respectively, was available under this arrangement. As of December 31, 2017 and 2016, there were no outstanding borrowings on this line and the Company did not draw on this line during these periods. As of December 31, 2017 and 2016, we maintained four federal funds lines of credit with commercial banks that provide for the availability to borrow up to an aggregate of $75.0 million, in federal funds. There were no funds under these lines of credit outstanding as of December 31, 2017 and 2016.

NOTE 11: NOTE PAYABLE AND LINES OF CREDIT

Note Payable

In conjunction with the acquisition of MCBI, the Company entered into a loan agreement on February 1, 2015 for $31.0 million. On November 13, 2017, we paid the then remaining outstanding balance in full. Interest paid was $1.1 million and $1.1 million for the years ended December 31, 2017 and 2016, respectively.

Frost Line of Credit

On December 13, 2017, the Company entered into a loan agreement, or the Loan Agreement, with Frost Bank, or the Lender, which provides for a $30.0 million revolving line of credit, or the Line of Credit. The Company can make draws on the Line of Credit for a period of 12 months beginning on the date of the Loan Agreement, after which the Company will not be permitted to make further draws and the outstanding balance will amortize over a period of 60 months. Interest accrues on outstanding borrowings at a rate equal to the maximum “Latest” “U.S.” prime rate of interest per annum and payable quarterly in the first 12 months and thereafter quarterly principal and interest payments are required over a term of 60 months. The entire outstanding balance and unpaid interest shall be payable in full on December 13, 2023.

The Company may prepay the principal amount of any loan under the Loan Agreement without premium or penalty. The Company can use the proceeds from the Loan Agreement for the purpose of financing acquisitions and other general corporate purposes, including capital augmentation.

The obligations of the Company under the Loan Agreement are secured by a valid and perfected first priority lien on all of the issued and outstanding shares of capital stock of the Bank.

Covenants made under the Loan Agreement include, among other things, the Company maintaining tangible net worth of not less than $240 million, the Company maintaining free cash flow coverage ratio of not less than 1.25 to 1.00, the Bank’s Texas Ratio (as defined under the Loan Agreement) not to exceed 15%, the Bank’s Total Capital Ratio (as defined under the Loan Agreement) of not less than 12% and restrictions on the ability of the Company and its subsidiaries to incur certain additional debt. The Company was in compliance with these covenants at December 31, 2017.

As of December 31, 2017, there were no outstanding borrowings on this line and the Company did not draw on this line during the period from December 13, 2017, when the Company entered the agreement, to December 31, 2017.

Additional Lines of Credit

The FHLB allows us to borrow on a blanket floating lien status collateralized by certain loans. As of December 31, 2017 and 2016, total borrowing capacity of $793.3 million and $767.8 million, respectively, was available under this arrangement. As of December 31, 2017 and 2016, there were no outstanding borrowings on this line and the Company did not draw on this line during these periods.

As of December 31, 2017 and 2016, we maintained four federal funds lines of credit with commercial banks that provide for the availability to borrow up to an aggregate of $75.0 million, in federal funds. There were no funds under these lines of credit outstanding as of December 31, 2017 and 2016.