8.BORROWINGS

Borrowings consist of the following at September 30, 2016 and December 31, 2015 (dollars in thousands):


	September 30,		December 31,
	2016		2015

Federal Home Loan Bank fixed rate advances at September 30, 2016 with a weighted average rate of 2.01% maturing in 2016, 2017, 2018, 2019 and 2020	$	46,000	$	35,000
Correspondent bank line of credit - holding company		—		7,750
Correspondent bank term note, current floor rate of 4%, maturing April 30, 2019		21,100		2,300
USDA Rural Development, fixed-rate note payable, maturing August 24, 2024 interest payable at 1%		630		704

	$	67,730	$	45,754

The Federal Home Loan Bank borrowings are collateralized at September 30, 2016 by the following: a collateral agreement on the Corporation’s one to four family residential real estate loans with a book value of approximately $47.533 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $11.000 million and $11.094 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $2.926 million. Prepayment of the advances is subject to the provisions and conditions of the credit policy of the Federal Home Loan Bank of Indianapolis in effect as of September 30, 2016.

The USDA Rural Development borrowing is collateralized by loans totaling $.108 million originated and held by the Corporation’s wholly owned subsidiary, First Rural Relending, and an assignment of a demand deposit account in the amount of $.583 million, and guaranteed by the Corporation.

The Corporation currently has one banking borrowing relationship. The relationship consists of a non-revolving line of credit and a term note. The line of credit bears interest at 90-day LIBOR plus 2.75%, with a floor rate of 4.00% and has an initial term that expires on April 30, 2018. The term note bears the same interest and matures on April 30, 2019 and requires quarterly principal payments of $550,000 beginning March 31, 2017. This relationship is secured by all of the outstanding mBank stock.