Note 10: Borrowings

Borrowings were comprised of the following at December 31, 2017 and 2016:


	December 31,
	2017		2016
	(In thousands)
Line of credit	$	25,000	$	25,000
Short-term subordinated debt		30,000		30,000
FHLB advances		1,612		2,006
Total borrowings	$	56,612	$	57,006

The Company has a revolving line of credit (“LOC”) with a bank for up to $25.0 million with an outstanding balance at both December 31, 2017 and 2016 of $25.0 million. The interest rate on the note is LIBOR Rate plus 1.85%, or 3.23% at December 31, 2017 and 2.485% at December 31, 2016. The LOC is collateralized by a pledge and first lien security interest in and to all of the issued and outstanding common stock of Merchants Bank of Indiana, the 100% owned subsidiary of the Company. The agreement also requires the Bank to maintain at all times a Tier 1 Leverage Ratio of not less than 8% and is tested on a quarterly basis. The LOC was amended effective June 2, 2017, which extended the maturity date to June 1, 2018.

The Company entered into an agreement with Stonegate (a significant customer of the Bank) on April 15, 2014 and amended on September 25, 2014. Stonegate agreed to invest up to $30.0 million in the Company’s subordinated debt. The Company, in turn, agreed to form and fund NMF, a wholly owned subsidiary of the Bank, and the Bank pledged 100% of the shares of NMF stock to Stonegate in consideration for Stonegate’s investment in the Company’s subordinated debt, with the shares serving as the sole collateral for such debt. The subordinated debt balance as of both December 31, 2017 and December 31, 2016 was $30.0 million, with a maturity date of March 31, 2019. Interest on the debt is paid quarterly at a rate equal to one‑month LIBOR, plus 350 basis points, plus additional interest equal to 49% of the earnings of NMF. Stonegate was acquired by Home Point Financial Corporation effective May 31, 2017.

FHLB advances are secured by mortgage loans totaling $74.4 million and $64.3 million at, December 31, 2017 and 2016, respectively. In addition, available for sale securities and securities purchased under agreements to resell with a carrying value of $407.7 million and $320.1 million were pledged as of December 31, 2017 and 2016, respectively. At December 31, 2017, the FHLB advances had interest rates ranging from 2.27% to 4.74%, and at December 31, 2016, the FHLB advances had interest rates ranging from 2.00% to 4.74%, and were subject to restrictions or penalties in the event of prepayment.

Maturities of FHLB advances were as follows December 31, 2017:


	December 31,
	2017
	(In thousands)
Due within one year	$	417
Due in one year to two years		304
Due in two years to three years		55
Due in three years to four years		57
Due in four years to five years		59
Thereafter		720
	$	1,612