Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

Notes Payable

3 Months Ended

Mar. 31, 2017

Notes payable consisted of the following:



	March 31, 2017		December 31, 2016
Notes payable to clearing firm under forgivable loans	$	4,285	$	4,285
Note payable under subsidiary's term loan with bank	47		153
Note payable under subsidiary's revolver with bank	506		620
Notes payable by subsidiary to certain former shareholders of Highland	6,738		6,738
Notes payable to KMS' former shareholders, net of $189 and $221 of unamortized discount in 2017 and 2016, respectively	3,383		3,852
Notes payable to SSN's former shareholders, net of $570 and $651 of unamortized discount in 2017 and 2016, respectively	9,604		10,769
Total	$	24,563	$	26,417

The Company estimates that the fair value of notes payable was $22,751 at March 31, 2017 and $24,494 at December 31, 2016 based on then current interest rates at which similar amounts of debt could then be borrowed (Level 2 inputs). As of March 31, 2017, the Company was in compliance with all covenants in its debt agreements.

At March 31, 2017, the Company had $40,000 available under its $40,000 revolving credit agreement with an affiliate of its principal shareholder. On March 9, 2016, the Company entered into an amendment to the revolving credit agreement to extend the maturity date thereunder for a period of five years to August 25, 2021.

On April 21, 2017, Securities America entered into an amended and restated loan agreement with a financial institution. The loan agreement modified the interest rate for Securities America's revolving credit facility to prime plus 2.25% and decreased the revolving credit availability to $1,468. This loan agreement also provides for an additional term loan in the aggregate principal amount of $8,000, subject to certain conditions. This second term loan bears interest at 5.75%, with a maturity date of May 1, 2020. The loans are collateralized by Securities America's assets.