COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

11. COMMITMENTS AND CONTINGENCIES

At December 31, 2011, future annual minimum rental payments due under non-cancellable operating leases are as follows (in thousands):

2011	$	2,179
2012		2,034
2013		2,028
2014		1,871
2015		1,654
Thereafter		13,344
	$	23,110

Rental expense under operating leases for 2011, 2010, and 2009 was approximately $2.0 million, $1.7 million, and $1.8 million, respectively.

The Company is party to various legal proceedings arising in the ordinary course of business. In management's opinion, the ultimate resolution of these legal proceedings will not have a material adverse effect on the Company's financial position, results of operations, or cash flows.

At December 31, 2011, the Company had borrowing lines available through the Bank with the FHLB of Dallas and other correspondent banks.  The Bank had approximately $261.9 million available, subject to available collateral, under a secured line of credit with the FHLB of Dallas.  Additional federal funds lines of credit were available through correspondent banks with approximately $48.5 million available for overnight borrowing at December 31, 2011.  The Bank also had a credit line available through the Federal Reserve of $31.9 million.  As of December 31, 2011, we had no borrowings with the FRB-Atlanta, FHLB-Dallas, or from correspondent banks.